Home California First-in-Nation Wealth Tax Introduced by California State Lawmakers

First-in-Nation Wealth Tax Introduced by California State Lawmakers

by ECT

On Thursday, Assemblymember Ron Bonta (D-Oakland) and several lawmakers introduced legislation that would establish a first-in-the-nation net worth tax. This proposed wealth tax would generate an estimated $7.5 billion per year for California’s vital needs like education, housing, health care, and other state services.

The California Wealth Tax (AB 2088 as amended) would apply a 0.4% tax on the portion of a taxpayer’s net worth that exceeds $30 million. (approximately 30,400 people.)

“The California Wealth Tax would add critically needed revenue for California by creating a more equitable tax structure,” said Bonta. “Families are hurting right now. COVID-19 has only made matters worse. In times of crisis, all Californians must step up and contribute their fair share. Asking these well-resourced Californians to give a little more to keep our people working and support our most vulnerable is the right thing to do.”

Joints authors of the California Wealth Tax (AB 2088) are Assemblymembers Rob Bonta, Wendy Carrillo, David Chiu, Lorena Gonzalez, Ash Kalra, Miguel Santiago, Mark Stone, Phil Ting and Buffy Wicks. Senator Nancy Skinner and Assemblymember Kansen Chu are principle coauthors. Assemblymember Reggie Jones-Sawyer, Senator Maria Elena Durazo and Senator Lena Gonzalez are coauthors.

“As millions struggle to feed their families and keep a roof over their head during this pandemic, the rich are just getting richer,” said Assemblymember David Chiu (D-San Francisco). “It is long past time that California had an equitable tax structure that allows us to provide for all Californians.”

“The extreme wealth gap that plagues our state pre-dates the COVID-19 pandemic,” Assemblymember Lorena Gonzalez (D-San Diego) said. “Now, middle-income and working class folks are faced with being unemployed or they’re forced to return to jobs that put them at a higher-risk of getting sick. Our economy has left working people behind for too long. I’m proud to joint author this proposal to tax extreme wealth in our state to help families that are struggling to stay afloat in this economic downturn.”

“We have people better off than they were before the pandemic, and others who are on the brink of losing it all,” said joint author Assemblymember Miguel Santiago (D-Los Angeles). “We cannot just sit back and turn a blind eye. We are at a very critical point in time where if we don’t start putting dollars where our values are, we will see unprecedented devastation in our communities. We need people to start pulling their own weight here, and it starts with the ultra-rich.”

“The most critical thing we can do to ensure that we’re strengthening our social safety net is to create a more equitable tax structure,” said Assemblymember Buffy Wicks (D-Oakland). “This is especially true amid the devastation brought on by the pandemic. From housing and homelessness, to public education and food security, this bill will help essential services recover from this economic crisis in the most just, inclusive way possible.”

AB 2088 is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association.

Assemblymember Rob Bonta represents the 18th Assembly District, which includes the cities of Oakland, Alameda, and San Leandro and is the Assistant Majority Leader.

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19 comments

Jg Aug 14, 2020 - 9:38 am

The idea sounds good but what happens when the wealthy flee the state? We are already one of the highest taxed states in the nation. Will this kill jobs and private spending ? I hope our good politicians do an in-depth study to close the loopholes in case it backfires on California’s economy.

tom Aug 14, 2020 - 10:30 am

the tax will apply to those that remain after this first batch leave, and when the second batch leave then they will say tax applies to everyone not just the rich…

Robert C. Aug 14, 2020 - 11:09 am

tom, yours is a good point. I’m curious just how these deep thinkers propose to even determine what every taxpayers “net worth” even is. Assets are not the same thing as income.

tom Aug 15, 2020 - 9:27 pm

according to peter schiff there will be an annual cost of appraisals to affected assets,,,, imagine, having to pay, every year, an itemized appraisal of all assets that have been bought and paid for,,,, If i vote to tax the rich, they can leave California because they could easily afford to…. Why would i agree to push the rich out just because? Makes no sense, California has to rethink what the long term consequences are if this horrible tax passes…

Rex Aug 16, 2020 - 5:35 pm

Ron Bonta (D-Oakland) is crazier than a loon. He will cut off his nose to spite his face! A real piece of work! For those in the $30 mil range, this is just pocket change for them.

Robert C. Aug 14, 2020 - 10:49 am

One can debate the merits (or lack of them) for this idea, but using Covid-19 as a justification is incredibly stupid.

kenneth j kurek Aug 14, 2020 - 10:57 am

France tried something similar and many of the rich, who are the most mobile, moved to Belgium.

Tax the clowns!! Aug 14, 2020 - 1:40 pm

I hope they tax the hell out of these idiot pro athletes and sports teams. Dumb, uneducated clowns that are no different than circus acts!!’

Guillermo Aug 16, 2020 - 8:08 am

In defense of those lame ass pro athletes, most not all, are taxed in every state they play a game.

JohnnyLaw Aug 14, 2020 - 2:40 pm

Since Bonita has let Democrats run his district to the ground he needs another source of income. #DemoRats Let’s vote all of them out of office in November.

Susan Crews Aug 14, 2020 - 3:39 pm

The are going to continue to tax those who leave for 10 years!

A Mom Aug 16, 2020 - 6:44 am

Taxing after they leave the state would be unconstitutional. The wealthy will leave and take their businesses with them. It’s why Elon Musk is building his next plant in Texas. Vote Red. The Dems are killing this state and all big cities!

Dawn Aug 16, 2020 - 5:28 pm

Elon Musk’s house in Portola Valley is up for sale. He’s also selling a bunch of his houses in southern California.

Roxanne Fox Aug 16, 2020 - 5:32 pm

Once you leave the state, they cannot touch you! Now, who are the people high-tailed it out of here? It’s the Silicon Valley billionaires!

FERNANDO C NAVARRO Aug 14, 2020 - 10:28 pm

Hey morons. To these globalists retards ALL AMERICANS ARE WEALTHY. THAT MEANS YOU.

some poor soul in Mumbai ..looks at a 3rd gen welfare queen AND SCREAM …..SCALP DA RICH.

YA GET IT CHUCKIE??

THE DEMONCATS. WANT ALL YOUR MONEY. BECAUSE WE ARE ALL CATTLE AND USELESS EATERS TO THEM.

So if you want to throw the rich under the bus. Then the middle class. Then the unemployed. THERE WONT BE ANYBODY TO DEGEND YOU WHEN ITS YOUR TURN INTO THE WOOD CHIPPER!!

Antioch-Pittsburg Highway Aug 15, 2020 - 9:54 am

The super rich will always find a loophole to avoid this theft. But the politicians will still proclaim how the wealth tax is working as expected fooling the rest of us and guilting us into contributing our share.

Thomas Manning Aug 16, 2020 - 1:58 pm

California has failed to manage its income for decades. Nothing has changed.

Tom Aug 16, 2020 - 2:38 pm

Makes no sense to tax the rich so they leave California, are we that crazy? What we have going on here is an ever increasing bloated state government who made money promises they cannot deliver…. So, their solution is to heavily increase taxes and what for? With the Federal Reserve printing unlimited dollars and keeping interest rates near zero, taxing folks has been made irrelevant, … What needs to happen is to shrink government and get back to sound money, allow the free market to do what it does best, drop the idea of consumption, bring back production, encourage savings and get out of debt…. Let market conditions thrive by getting government out of the way, it makes no sense to print our way to prosperity let alone tax it…. Trillion dollars of debt that cannot be paid back is a sure path to collapsing the dollars status as a world reserve currency…. In the end, our money will become worthless …. Taxing money that is becoming devalued does little to address the real problems in a civilized society. What we have now is corruption .. In the banks, in government, that needs to be fixed first.

Debbie Aug 16, 2020 - 9:18 pm

Prince Harry and wife: Welcome home! [email protected]!

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