An initiative that’ll spin yer head
In other election news, we got word today from Secretary of State Debra Bowen that the attorney general has approved the following proposed initiative for signature gathering:
WEALTH TAX. CONSTITUTIONAL AMENDMENT AND STATUTE. Imposes one-time 45% tax on value of property exceeding $40 million of a California resident or held in California by a nonresident. Imposes one-time tax (between 26.5% – 44.3%) on property exceeding $5 million when resident dies or leaves California. Imposes additional 17.5% tax on total incomes of taxpayers with income exceeding $150,000 if single, $250,000 if married, increasing to 35% if incomes exceed $350,000 if single, $500,000 if married. Creates tax credits. Requires State to acquire majority shares of specified corporations to influence environmental practices. May exempt new revenues from education funding requirements. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: One-time increase in state revenues potentially in the low hundreds of billions of dollars from the imposition of a wealth tax, and ongoing increase in state revenues potentially in the billions of dollars from imposition of the tax on certain people dying or leaving the state. This revenue would be allocated to accomplish various goals related to environmental protection. Potential annual net increase in personal income tax revenues in the tens of billions of dollars annually from tax rate increases and new tax credits. The first $7.5 billion annually would be allocated to the state General Fund with additional revenue allocated for environmental protection. Unknown state and local revenue reductions – potentially in the tens of billions of dollars annually – due to changes in taxpayer behavior.
All I can say to that is:
Wow.
“Wow” is right. I’m proud to call myself a tax and spend liberal, but this is a bit too rich for my blood. Luckily, California is filled with greedy pocketbook voters who would never in a million years approve something like this.