Bonta said tax “avoidance” would not be allowed as California would tax them for the next ten years, despite what state they live in. The degree to which a person’s wealth would be subject to the tax would be determined by the amount of time he or she spent in the state during the prior ten years. If you live in California, you plan on coming here, or you plan on leaving, this is definitely something that you need to know about. The wealth tax bill is also structured in such a way CA wealthy residents who leave still have to pay the extreme wealth tax on a fraction of their wealth for up to 10 years: they pay tax on 90% of their wealth the year after they leave, on 80% 2 years after they’ve left,.., on 10% 9 years after they’ve left, 0% 10 years or more after they’ve left. — Peter Schiff (@PeterSchiff) August 15, 2020 California is considering a new piece of legislation that would impose a ten-year wealth tax on any individual who spends more than 60 days in the … View on dailycaller.com Dec 28, 2020 Basically, he thinks it’s California’s money. — Peter Schiff (@PeterSchiff) August 15, 2020 Any wealthy person who moves into Cal. The wealth tax also has an apportionment methodology that applies a 10-year lookback period to former residents who had been subject to the wealth tax in any of the preceding 10 years. California Assemblymember Rob Bonta (D) details a new proposed wealth tax that would continue to tax Californians for 10 years after they move out of the state. “Our [population of] millionaires and billionaires has grown, our economy has grown. California State Assemblyman Rob Bonta was pressed by Fox Business Network anchor Neil Cavuto on his proposal which would reportedly still require that wealthy residents who escape the surtax to continue to pay taxes for up to ten years. California legislators want a wealth tax on the rich, even if they flee. In general, the portion of a taxpayer’s wealth subject to the tax imposed by this part shall be multiplied by a fraction, the numerator of which shall be years of residence in California over the 10 last years, and the denominator of which shall be 10. Fox Business Network anchor Neil Cavuto questioned California State Assemblyman Rob Bonta on “ Cavuto: Coast to Coast ” Friday over his proposal to institute a 0.4% wealth tax on Golden State residents worth more than $30 million. California would tax them for ten years. The new threat: a first-in-the-nation combination wealth tax and exit tax. . California seeks to increase it’s already stratospheric top 13.3% income tax to 16.8%, and the latest new tax the golden state wants to collect is a .4% wealth tax. For part-year and temporary residents, the tax would apply proportionally based on the number of days they are in the state during the year. Get the latest BPR news delivered free to your inbox daily. California taxpayers may have even more on their plate to worry about besides a ballot initiative increasing property taxes, raising the top state income tax rate to 16.8 percent, and state tax collections this year that have run ahead of projections. Bonta said that because they accrued the wealth in California, the state can continue to legally tax it. In a more eyebrow-raising component, Bonta explained that the “phased-in approach” for the proposal will assure the California government will continue to collect taxes from even those residents who leave the state. Please see www.pwc.com/structure for further details. Since the legislative session ends August 31, 2020, this tax likely faces significant hurdles to pass in 2020. “Certainly we’re open to dialogue and discussion as we move the bill forward, but we think it’s a sound approach and has a strong legal foundation.”, “Sounds like they’d be prisoners of California. The bill, AB 2088, included wording that would make an individual or corporation who spent more than 60 days in California in any given year subject to some level of the wealth tax. Provides special apportionment rules for the wealth tax Looms for Single year Stays Over 60.... 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