California already taxes at least two types of assets, property and vehicles (including boats). A new bill aims at everything else, literally. The bill would apply a 0.4% tax to all worldwide property. A broad tax on assets could conceivably be a useful tool in a progressive tax system in order to narrow income inequality. One great target would be politicians because they certainly didn’t build that. The tax would also be imposed on former residents who left within the past ten years The law is aimed at taxpayers who fled the state’s income tax rates, which are the highest in the country.
California is angry with Florida for harboring tax fugitives. California is still seeing a tax shortfall which is needed to support illegal aliens and sanctuary cities. California wants to tax millionaires and billionaires all over the country.
California wants to apply the wealth tax to all United States citizens who have moved to Florida. Why should New York get to go after Trump when California can’t? New Yorkers flock to Florida to escape a similarly high income tax. Among them are President Trump and Carl Icahn who never lived in California and many others who did.
Also, they didn’t build that (wealth). Everyone takes advantage of California fruit, vegetables and movies to name a few. Nationwide, they depended on the government for roads, bridges and police. Now they are using roads and bridges to get to the promised land (Florida). They need to be taxed for using them. Since they can’t use the police no extra tax will be levied for that. California wants to build back better just like Biden. If a Federal wealth tax is passed, the US will definitely pursue citizens outside the country so why can’t California pursue those inside the country.
The shifting of assets to global tax havens is an enormous problem for governments around the world, but it requires a concerted international effort to solve it. That would impact another trend, those giving up their US citizenship. Global conflict in the future may be over extraditing these tax fugitives.