Several high-profile Bay Area tech and finance figures, including Peter Thiel and David Sacks, have recently opened offices in lower-tax states such as Florida and Texas. The moves come as a proposed one-time 5% wealth tax on ultra-high-net-worth individuals gains political traction in California.
Affectionate-Panic-1 on
Taxing unrealized gains sounds like a nightmare, and there will definitely be legal questions on a California’s ability to put a wealth tax on assets outside of the state.
Plus 5% is huge, though it’s pitched as a one time tax.
Obvious_Chapter2082 on
This shouldn’t be entirely surprising. When a “one-time” tax is supposed to pay for ongoing healthcare expenses, it’s likely not gonna end up as a one-time tax.
Say what you want about wealth taxes, but 5% is pretty significant. That’s practically a cap on real wealth growth over the long-term. Or at least a very large proportion of that wealth growth
luxloomis on
There should be not be a place on planet Earth for these billionaires to hide their money from taxation. Anything over a billion should be taxed at 100%.
Ancient-Bat8274 on
As much as I support tax the rich in spirit I know it’s not going to work as intended. As long as the rich have safe havens in other states or even other countries etc they will find a way to escape what they owe. Until they have no quarter they will continue this. Leaves really only one way to go after them tbh and that is to leave no safe havens for them. Anywhere
turb0_encapsulator on
this stupid proposal will go nowhere.
OTOH, California needs to get real about fixing its property tax system. As prices have risen since Covid, the obvious inequity of the system has gotten completely absurd. Two people with identical homes next to each other should have not have property tax rates that differ by 90%.
Extension-Pick8310 on
This is just so badly thought out by SEIU. I have no problems with a wealth tax, but do it intelligently.
“Oh but Massachusetts did it and they didn’t leave!” Yes, because they did it an entirely different way. And true to form, rather than study a case in good governance from another Northeast state, California’s interests ignore the pesky details.
KEE_Wii on
This is one of those situations where I agree there’s an issue but don’t think this is even a remotely solid solution. It wouldn’t be as bad if billionaires were not using this money to have an insane level of influence in American politics and basically routing federal dollars to themselves but here we are with extreme wealth inequality, CEO compensation through the roof, and a wide swath of the American public actively struggling to put together any semblance of the American Dream.
Something has to change but a one time tax at the state level isn’t it.
Dripdry42 on
Ha! this is a propaganda headline.
here is why: office expansions take years of consideration and build out. They can be huge sinks of money and time for a company. they are not undertaken lightly.
this is just the propaganda machine at work, trying to sway public opinion and doing more political stuff. Tax the oligarchs.
iginca on
Even though this won’t work in its current form and will get nowhere, Sacks is a asshat and Thiel is vile. Them leaving wouldn’t be the worst
OrdinaryReasonable63 on
My proposal (as opposed to the nightmare of taxing unrealized gains):
1. It would seem to be more reasonable to simplify estate taxes and close the countless loopholes so these assets are taxed properly upon death. I would get rid of the cost basis step up for assets beyond 5 million (arbitrary number to appease common folk) so that financial institutions have less incentive to write huge margin loans against these assets (since their cost basis wouldn’t get stepped up). This lets the estate tax be the sweep up it was originally designed by the IRS to be.
2. A second prong to this would be to limit stock buybacks in excess of net issuance. This is largely the mechanism gains remain unrealized from public investments for decades and decades. It forces business to invest into operations or return capital in a manner that is can be taxed.
13Krytical on
Good, let the rich flee. Run scared of paying your fair share, you’re that bad, you can even make do with taxes..
Poor widdwle rich boys need to skip taxes and get freebies to feel rich
Animal_Courier on
I don’t know why people come up with all of these complicated schemes to tax wealth.
We can just tax land.
It puts a huge dent in inequality while allowing innovators, inventors, and businesspeople their opportunity to build something awesome and get wealthy. It prevents the wealthy from being idle forever. It keeps land prices low so that new residents and businesses have opportunities to start families and firms for themselves.
It’s endorsed by virtually every significant economist from Smith and Ricardo to Friedman and Picketty. Let’s fucking go.
13 Comments
Several high-profile Bay Area tech and finance figures, including Peter Thiel and David Sacks, have recently opened offices in lower-tax states such as Florida and Texas. The moves come as a proposed one-time 5% wealth tax on ultra-high-net-worth individuals gains political traction in California.
Taxing unrealized gains sounds like a nightmare, and there will definitely be legal questions on a California’s ability to put a wealth tax on assets outside of the state.
Plus 5% is huge, though it’s pitched as a one time tax.
This shouldn’t be entirely surprising. When a “one-time” tax is supposed to pay for ongoing healthcare expenses, it’s likely not gonna end up as a one-time tax.
Say what you want about wealth taxes, but 5% is pretty significant. That’s practically a cap on real wealth growth over the long-term. Or at least a very large proportion of that wealth growth
There should be not be a place on planet Earth for these billionaires to hide their money from taxation. Anything over a billion should be taxed at 100%.
As much as I support tax the rich in spirit I know it’s not going to work as intended. As long as the rich have safe havens in other states or even other countries etc they will find a way to escape what they owe. Until they have no quarter they will continue this. Leaves really only one way to go after them tbh and that is to leave no safe havens for them. Anywhere
this stupid proposal will go nowhere.
OTOH, California needs to get real about fixing its property tax system. As prices have risen since Covid, the obvious inequity of the system has gotten completely absurd. Two people with identical homes next to each other should have not have property tax rates that differ by 90%.
This is just so badly thought out by SEIU. I have no problems with a wealth tax, but do it intelligently.
“Oh but Massachusetts did it and they didn’t leave!” Yes, because they did it an entirely different way. And true to form, rather than study a case in good governance from another Northeast state, California’s interests ignore the pesky details.
This is one of those situations where I agree there’s an issue but don’t think this is even a remotely solid solution. It wouldn’t be as bad if billionaires were not using this money to have an insane level of influence in American politics and basically routing federal dollars to themselves but here we are with extreme wealth inequality, CEO compensation through the roof, and a wide swath of the American public actively struggling to put together any semblance of the American Dream.
Something has to change but a one time tax at the state level isn’t it.
Ha! this is a propaganda headline.
here is why: office expansions take years of consideration and build out. They can be huge sinks of money and time for a company. they are not undertaken lightly.
this is just the propaganda machine at work, trying to sway public opinion and doing more political stuff. Tax the oligarchs.
Even though this won’t work in its current form and will get nowhere, Sacks is a asshat and Thiel is vile. Them leaving wouldn’t be the worst
My proposal (as opposed to the nightmare of taxing unrealized gains):
1. It would seem to be more reasonable to simplify estate taxes and close the countless loopholes so these assets are taxed properly upon death. I would get rid of the cost basis step up for assets beyond 5 million (arbitrary number to appease common folk) so that financial institutions have less incentive to write huge margin loans against these assets (since their cost basis wouldn’t get stepped up). This lets the estate tax be the sweep up it was originally designed by the IRS to be.
2. A second prong to this would be to limit stock buybacks in excess of net issuance. This is largely the mechanism gains remain unrealized from public investments for decades and decades. It forces business to invest into operations or return capital in a manner that is can be taxed.
Good, let the rich flee. Run scared of paying your fair share, you’re that bad, you can even make do with taxes..
Poor widdwle rich boys need to skip taxes and get freebies to feel rich
I don’t know why people come up with all of these complicated schemes to tax wealth.
We can just tax land.
It puts a huge dent in inequality while allowing innovators, inventors, and businesspeople their opportunity to build something awesome and get wealthy. It prevents the wealthy from being idle forever. It keeps land prices low so that new residents and businesses have opportunities to start families and firms for themselves.
It’s endorsed by virtually every significant economist from Smith and Ricardo to Friedman and Picketty. Let’s fucking go.