Wednesday, August 27, 2008

Death by Taxes if this passes in California

Link

A California activist is trying to gather the 694,354 signatures needed to place a tax initiative on the ballot that would:

  • Impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate) -- 17.5% (on all of the taxpayer's income) when income exceeds $150,000 (single)/$250,000 (joint), and an additional 17.5% (again, on all of the taxpayer's income) when income exceeds $350,000 (single)/$500,000 (joint).
  • Impose a one-time 55% wealth tax on assets exceeding $20 million held by a California resident or held in California by nonresident.
  • Impose an exit tax of between 36.5% to 54.3% on both income and unrealized appreciation in asset values over $5 million when a resident dies or leaves California.