The lost revenues due to the behavioral responses of taxpayers who stay in the state may be the greater danger. But more importantly, we see that out-migration might not even be the worst of California’s problems when it comes to the new wealth tax proposal. Our research does indeed find significant out-migration effects caused by tax rate increases, refuting the flawed findings of other research, and it also shows that departure rates for top earners are accelerating. ![]() While media coverage on the wealth tax bill, including this recent article in CalMatters, focuses on the potential for tax flight associated with such a proposal, the risks are often understated. The legality of such a provision is dubious at best, but that is not the only reason why a wealth tax should be a nonstarter in the Golden State. He wants wealthy taxpayers to continue sending money to Sacramento even after they have moved out of the state entirely. While most states are seeking to increase capital gains taxes or income taxes, assemblymember Lee’s bill goes one step further. Bills to increase taxes on the wealthy are circulating in seven other state legislatures as well. The proposal, Lee asserts, will raise $21.6 billion in revenues, but that is assuming the well will not run dry.Ĭalifornia is not the only state considering such a proposal. The latest proposal comes from state assemblymember Alex Lee, who is seeking to pass a new wealth tax that would impose a 1% annual tax on the wealth of individuals with net worth of $50 million or more and a 1.5% tax on the wealth of individuals with net worth totaling $1 billion or more. ![]() For forms and publications, visit the Forms and Publications search tool.Lawmakers in Sacramento are once again considering going back to the well-that is, the state’s wealthy taxpayers-in search of even more money to fill their coffers. We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool.įorms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google™ translation application tool. For a complete listing of the FTB’s official Spanish pages, visit La página principal en español (Spanish home page). These pages do not include the Google™ translation application. We translate some pages on the FTB website into Spanish. If you have any questions related to the information contained in the translation, refer to the English version. Any differences created in the translation are not binding on the FTB and have no legal effect for compliance or enforcement purposes. The web pages currently in English on the FTB website are the official and accurate source for tax information and services we provide. ![]() Consult with a translator for official business. This Google™ translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only.
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