Economy & Finance
The Wealth Tax Proposal: A Controversial Solution to California’s Economic Loss
Analyzing the Pros and Cons of California’s Wealth Tax Proposal
California’s Wealth Tax Proposal is one of the recent initiatives introduced to compensate economically by taxing the ultrawealthy.
The wealth tax imposes a 1% tax on households with incomes over $50 million and 1.5% on wealth over $1 billion. If passed, the law would start in 2024 for those over $50 million and 2026 for others. The law would apply to full-time, part-time, and temporary residents who maintain a Worldwide Net Worth Based on global assets, with exceptions.
Controversially, the Exit tax structure allows the wealth tax to be applied fir several years after a taxpayer leaves the state of California. However, certain taxpayers may be able to defer payment to later dates even if they leave the state.
Governor Gavin Newsom has already criticized and opposed the introduction of this bill. He has opposed wealthy proposals, making the bill unlikely to pass; however, ultrawealthy taxpayers should still be…
