California’s lawmakers are proposing AB 2088, that would establish a “net worth tax” (not income tax) on its residents and others. The tax level is now proposed at 0.4% tax rate on all net worth above $30 million. The additional tax burden would be separate and additional to California’s state income tax, property taxes, sales taxes, and other taxes.
According to Forbes magazines, the state now has a highest-in-the-nation 13.3% top rate, and another recently introduced tax bill (AB 1253) would raise the state’s income tax rate to 16.8% retroactively.
If one or both of these state laws pass, along with some of the additional local municipal taxes that some cities are considering, the migration of businesses and residents out of California is likely to continue but at a higher rate. Prior to the COVID-19 impacts and lawmaker decisions, on November 5, 2019 the Sacramento Bee provided an excellent overview of the “number of people fleeing California” and is worth a read.