Most people these days are still reeling from the pandemic. The IRS and state governments are feeling the revenue pain too. One California bill with several cosponsors would increase the state’s already stratospheric top 13.3% income tax rate to 16.8% (Links to an external site.).
Not shocked yet? The newest tax some golden state legislators want to collect is a .4% wealth tax. The “leader” in state taxes already, this would be the first-in-the-nation wealth tax targeting the very wealthy. This isn’t on income they earn, mind you, but on their wealth itself. A summary of the bill says, “AB 2088 establishes a first-in-the-nation net worth tax, setting a 0.4% tax rate on all net worth above $30 million.” California Assembly member Rob Bonta (Links to an external site.), D-Oakland, proposed the legislation. The tax would be applied to the net worth of about 30,400 Californians, “raising approximately $7.5 billion annually,” the summary claims. “The tax takes into account all assets and liabilities held by an individual, globally, capturing the immense levels of accumulated wealth held by the top 0.1% of Californians.”
For this discussion, I would like to know your thoughts about the impact of this bill on the rest of Californians. What would be the positive and negative consequences to anticipate?