The wealth tax might be one of the most idiotic ideas to come out of California in a while. The wealthy are already leaving California and this will be the final nail in the coffin. I left San Francisco in 2018 for Tennessee and so glad I did. I wouldn’t have been able to buy a house, accrue real savings, and run a small business nearly as successfully from CA. Most certainly I’d still be renting a studio apartment the size of a closet with no washer, dryer, and dishwasher.
The All-In Podcast hosts have already said they are looking at moving out of CA if this passes. If you’re wealthy you’d be fiscally irresponsible to stay. Wealthy will flee leaving a socialist state which only supports those who depend of the state. We all know that works out.
Democrats vilifying the wealthy, while strategically might be effective is frankly un-American and is breeding a population of pessimistic, disillusioned, radical socialists.
A one-time wealth tax doesn't seem to make a ton of sense.
The current loop hole is that loans are not taxed so people take out loans against their assets thus never paying income tax. Tax those loans and refund taxes when the loans are repaid.
I don't care how its accomplished, but there must be a system that assures that everyone shares the same relative burden of paying for the costs of society. Relative burden meaning the financial pain Musk experiences is the same as you and I experience.
Right now, income is the only thing taxed by the federal government. Unlike wage earners, the truly wealthy ( say over 100 million in assets ) only have income if and when they chose to do so. Every billionaire could chose to never pay a single penny of income tax - and remain a billionaire - forever. And that's exactly what they do. They do not pay income tax. Unless they have an asset readjustment reason to do so.
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[ 2.4 ms ] story [ 26.5 ms ] threadThe All-In Podcast hosts have already said they are looking at moving out of CA if this passes. If you’re wealthy you’d be fiscally irresponsible to stay. Wealthy will flee leaving a socialist state which only supports those who depend of the state. We all know that works out.
Democrats vilifying the wealthy, while strategically might be effective is frankly un-American and is breeding a population of pessimistic, disillusioned, radical socialists.
The current loop hole is that loans are not taxed so people take out loans against their assets thus never paying income tax. Tax those loans and refund taxes when the loans are repaid.
We currently have 7 brackets capping out at $609,351 (37%) [1]. I say we add brackets at $2mm (39%), $10mm (41%), $100mm (43%) and $1bn (45%).
Then take away the stepped-up basis past 10x the median American's wealth (about $6mm [2]).
If you do it right, you could actually (increase) the thresholds on the lower brackets, thereby bringing the median voter's taxes down.
[1] https://www.irs.gov/filing/federal-income-tax-rates-and-brac...
[2] https://finance.yahoo.com/news/average-american-net-worth-62...
Soon continents, like Europe, are to expected to create their own solutions. The USA is becoming a liability.
Right now, income is the only thing taxed by the federal government. Unlike wage earners, the truly wealthy ( say over 100 million in assets ) only have income if and when they chose to do so. Every billionaire could chose to never pay a single penny of income tax - and remain a billionaire - forever. And that's exactly what they do. They do not pay income tax. Unless they have an asset readjustment reason to do so.