patrick.net

Patrick says

What could go wrong?

Inflation, for starters. $1M is not that impressive today as it was in 1970 or even 1990. Same can happen to $30M.

What could go wrong?

Let me translate into English what this polititalk of "“The tax takes into account all assets and liabilities held by an individual, globally, capturing the immense levels of accumulated wealth held by the top 0.1% of Californians.” really means:

"Hey, you top earning 30,400 Californians, time to pony up some campaign contributions, put my son on your Board, and so on. You know the drill."

I can't say I'm a big fan of taxes but I think we can all agree that we will never be free of them. If almost all new wealth is going to the 1% and we are having extreme wealth/income disparities, where is any new taxes supposed to come from? "To whom much is given, much will be required".

"As I often say: if you don't change the way money is created and distributed, you've changed nothing. If you don't change the means of acquiring capital and political power, you've changed nothing. If you don't change labor's share of the economy, you've changed nothing."

Charles Hugh Smith

GlocknLoad says

If you don't change labor's share of the economy, you've changed nothing.

This is exactly what Trump is doing, by bringing back manufacturing from China and getting serious about stopping illegal immigration.

Labor was already getting higher wages under Trump until China released the Wuhan virus, to the great joy of Democrats.

Run a corrupt incompetent government that squanders pork barrel for votes and power, utilize a fake pandemic (for the purpose abridging rights and forcing the population to perform nonsense measures, hoping to blame it on Trump FAIL!), wreck the large cities, destroy productive small business and drive out middle class earners and workers.

Great Socialist Paradise solution: raise taxes to shore up the corruption and incompetence.

Of course, it would never dawn on them that they will wind up with politicians without money and a large mass of previously imported and bribed free shit poor people now with nearly nothing, trying to squeeze an ever shrinking business base and the also shrinking handful of richfucks. The limousine liberal richfucks who allowed all of this out of vanity and feel good delusion will, of course, just leave.

What could possibly go wrong?

It's not just the rich that dems are trying to tax - they're hitting the middle and upper-middle class too. Some I've noticed:

CA has prop 19 on the ballot which will significantly raise property taxes for inherited real estate. Currently, children get to inherit their parents low prop 13 tax bill, but prop 19 will restrict that. Only up to the first million in market value on only the parents primary home will be allowed to be inherited w/o triggering a full tax reassessment. And if the children dont move in and make it their primary home w/in 1 year, they wont get anything - it will be fully reassessed.

If the parent owns multiple homes, they will all get fully reassessed tax bills. It doesn't matter how many children they have, or how much/little the homes are worth. Only the parents primary will have a chance at avoiding reassessment. They claim they're targeting inherited rental homes, but I don't believe it. They're trying to cast a much wider net by only allowing a single home a partial reassessment exemption.

----

CA prop 15 - if you own more than 3M in CA commercial or industrial real estate, you will lose your low prop 13 tax assessment, and get fully reassessed. No transition period or other attempt to gradually ramp the taxes up - it will just pull the rug out from under people. 3M isn't really that much in many CA areas. This will kill a lot of sandwich shop type businesses.

----

much worse, Biden says he wants to just get rid of the step up in tax basis for inherited assets.

If a parent owns a home now worth say 1.5M, which they bought for 100k many years ago, their tax basis = 100k, so if the parent sold the home their capital gains would be taxed on 1.4M in profit. But, if they die and leave the home to a child, the asset gets a step up in basis (set to the market value of the asset on the date of death), so if the child sold the next day, their tax basis would be the new stepped up value of 1.5M, so they would pay no capital gains tax at all. Same goes for inherited stocks etc...

Biden also mentioned getting rid of cap gains tax rates for those who make over 1M a yr, instead charging them full income tax rates I think (which he wants to raise back to 39% too). If he did this, and combined it with the inherited asset tax basis change, it would hit people hard. A 1.5M inherited home w/ a tax basis of 100k, assuming the child sold it, they would have 1.4M in profit = 1.4M in income for the year. This would make them ineligible for cap gains rates, so they would pay 39% federal + CA state 13% = 52%.

Ouch.

But at least we'll be more diverse, and more "equal", right? We gotta take some of that whyte wealth and redistribute it to their brown replacements. Note CA also has prop 16 - legalizing discrimination by race, so they can distribute this whyte wealth specifically to non-whyte people for maximum "justice".

Any way you cut it, the torment dial keep ratcheting up in California with no end in sight. With months of unhealthy, chemical laden smoke every year, it's also unhealthy. I'm coughing like a three pack a day stevedore getting all the gunk out of my lungs.

The politicians really are just sucking this place dry. Unless they live in guarded redoubts or the ever decreasing wealthy bubble worlds, they will likely leave the state, too, once it is husked out and the plunder is complete.

Hircus says

Biden also mentioned getting rid

Good news is he doesn't remember. Hopefully the new idea is better.

Yah the rich already have the option to leave. Why give them the incentive as well?
Joe Rogan and Ben Shapiro are leaving. Plenty of others will contemplate doing so as well if something as onerous as this tax bill gets made into law.

Some stuff I could go along with. The Prop 19 that reassess property over 1M that kids inherit... Yah I don’t like Prop 13 let alone that the kids of wealthy fucks get to keep paying much less than me on their property taxes for their Malibu beach home they inherited from pops. Fuck a bunch of that.

Fuck California!

GlocknLoad says

I can't say I'm a big fan of taxes but I think we can all agree that we will never be free of them. If almost all new wealth is going to the 1% and we are having extreme wealth/income disparities, where is any new taxes supposed to come from? "To whom much is given, much will be required".

By choice, not by government force. Besides this is CA way of just getting more money for crony government handouts. Soon we will all be paying wealth tax to make the owners rich.

Booger says

Fuck California!

I don't know. At this point, you would have to put a bag over its head.

I say do it. Just tax everyone 100% and get it over with. You all have been voting for this for years. At this point if you still live in California you have no one to blame but yourself.

The weather is overrated anyways. BA is too dry, too cold, all the time. Move to Midwest at least you have real summer. The winter problem has been solved. It’s called wear a fucking jacket.

Or move to the SE. Buy a golf cart. Wear some fucking shorts.

Either way drink fucking beer and don’t vote D.

www.youtube.com/embed/ZeCaYaG-ZRM

www.youtube.com/embed/gSBny6EzX14

What % of Americans do you think would vote to raise taxes on the "rich"? Depending on the definition of "rich", i think 80%+ would vote for higher taxes on the "rich". I think inheritance tax is where the government should go for more money. If you earn it, you can spend it how you like. If you didn't earn it...what I'm saying is, reward the doers and punish the freeloaders. There are plenty of "rich" freeloaders. In fact, I've heard that BLM and Antifa are filled with "rich" lay-abouts. Or at least those who stand to inherit.

2 things that are destroying America 1) $$ = power and it's being used to fuck all of us. George Soros? Hello. And 2) the elevation of victimization. It pays to be a victim.

Ceffer says

www.youtube.com/embed/ZeCaYaG-ZRM

This is sad, because very true :(

I’m amazed at the political change in California since I arrived in 1982.

The new taxes are intended to 1. Keep freebies for illegals and their spawn. 2. Keep rich salaries and pensions for government workers. 3. Both 1&2 help get the socialist scumbag politicians re-elected.

I’m sure that the views and weather are excellent for 8 months per year here; I will have to make do with second best, and travel here in the late summer to get my Big Sur, Carmel, and San Francisco visits accomplished.

Florida weather is good for 5-6 months per year, but as the weather begins to suck, half the residents leave, which has its advantages I guess.

I talked with a retired local government employee and mentioned taxes are getting unfair and high here; he really thinks that I’m just a complainer. He and his ilk are the problem; he’s a naive liberal who thinks taxes are good, so more are better.

Of course he’s installed two security cameras because he is afraid of the homeless all around him.

Al_Sharpton_for_President says

Hircus says

Biden says he wants to just get rid of the step up in tax basis for inherited assets

"No one has the right to live on inherited wealth" George McGovern 1972

"Under his estate tax plan, a cumulative total of the value of everything inherited by a given recipient throughout his lifetime would be calculated. After the total inheritances exceeded a specified point—he suggested $500,000—a 100 per cent tax would be imposed on further inheritances."

Meh. I think these proposed taxes on inherited stuff is mostly going to hit the middle and upper middle class. They paid their taxes on it already (in most cases), and unless your parents are really old, I think most people know they aren't going to inherit anything until they're old themselves, and so there's still plenty of motivation for them to work for themselves in the meantime.

The mega rich will still use all kinds of workarounds to get the money to their kin.

I'm not sure why they made the step up in tax basis rule though. That seems like an inheritance bonus, but maybe there's a reason for it.

Anyway, this is just dems picking low hanging tax fruit so they can buy votes via handouts.

this is very counterproductive. Why do same Hispanics in TX are reasonable, while in CA they are batshit crazy insane? Legislature + idiot libruls are to blame as a root of the problem.
Al_Sharpton_for_President says

Hircus says

That seems like an inheritance bonus, but maybe there's a reason for it.

For one thing, it's an accounting nightmare.

Sound familiar for the Great Socialist Paradise theme? First, you start divesting those who flee. Later, you start mugging them and making them go back at the border. Third, it's Berlin Wall time with dogs and machine guns to kill residents trying to flee. A captured, enslaved populace to do with as you wish, the fondest dream of socialist engines.

zzyzzx says

Hircus says

That seems like an inheritance bonus, but maybe there's a reason for it.

For one thing, it's an accounting nightmare.

Now that you said that - that may have been the reason they did it. Electronic records are getting good now, but in past decades I bet there were alot of children whose parents died, and they had no idea what the tax basis was for the various assets. A situation that creates "tax cheats", with no way to avoid it for many. And if you let some people off the hook because they say they legitimately can't find records, then other people will claim the same to save money. So letting everyone get a step up is one way to solve it.

https://babylonbee.com/news/doh-last-remaining-guy-who-hasnt-fled-california-now-has-to-pay-all-the-taxes