What is your opinion of this tax proposal?

Question

California Activist Proposes Wealth Tax and Probably Unconstitutional Exit Tax

by Joseph Henchman and Paul Galindo

Earlier this month, a California activist began gathering signatures to put a state wealth tax on the ballot. The measure would impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate), and penalize people who leave the state by seizing 55% of assets exceeding $20 million. The money raised would be used to eliminate the state's budget deficit and for purchasing controlling shares in large corporations.

The 17.5% surtax is unusual because it would be on a taxpayer's total (not marginal) income whenever it exceeds $250,000, with another additional 17.5 percent tax on total income (for a total additional 35 percent tax) whenever it exceeds $500,000. In the case of single taxpayers or taxpayers filing as head of household, these additional taxes would be levied on incomes greater than $150,000 and $350,000 respectively.

So say someone has adjusted gross income of $1,000,000 and taxable income of $750,000. Today, their tax bill would be (see link below):

http://www.taxfoundation.org/blog/show/23538.html

What are the possibilities of this activist being one of Obama's economic advisers?

Answer 1

It is a poor plan.  I would expect that they would not only not raise enough money to pay for anything but rather it could decrease total tax revenues.  It may be good for Oregon, Nevada and Arizona though as I would think businesses would bolt before this misguided plan takes effect..

Answer 2

Good Lord.  That's ridiculous.

Answer 3

That scheme reeks reeks of substantive and procedural Due Process violations under the Fifth Amendment, as extended to the states by the Fourteenth.    You gotta wonder what all those Hollywood liberals standing and cheering at the Dem. convention think:  George Clooney, Ben Affleck, Spike Lee, Charlize Theron, Josh Brolin, Annette Bening, Susan Sarandon, Leonardo DiCaprio, Gwyneth Paltrow and Sean Penn.   I bet they're elated.  

Answer 4

On a side note, and one that has gone mainly unnoticed, the Federal government has a similar program for citizens who wish to renounce American citizenship . . . except the Federal government takes it once step further and seizes assets (20%) . . . not income, but assets . . . 20% of everything you own plus income tax for an additional ten years (even though you are no longer a citizen)

Answer 5

It has to be one of his advisers. Democratic Robinhood syndrome.

Answer 6

It sounds like a plan that will not get through.  I do not see the Obama connection.

Answer 7

if the money was injected in a mass project to end world poverty i would say go for it but it will likely go into fighter jets or useless big government spending

Answer 8

All those Robin Hood tax schemes get tossed out because of the Equal Protection clause in the Constitution.

The issue should be closing loop holes.  

Answer 9

OMFG!

Wow, talk about communist. They are talking about actively enslaving the population and never allowing them to leave. Berlin wall anybody?! Except this wall is a wall of money instead of bricks.

Amazing that any American would ever support such blatant, evil tyranny.

Answer 10

LOL!   Now that is really stretching things.  Probably about as possible as Phil Gramm being one of his advisors.  Please, get real.  This has nothing at all to do with Obama and isn't one of his proposals.