Is a Wealth Tax next? (Montclair: unemployment rate, buying, bankruptcy)

[Hard8]

Originally Posted by SportyandMisty

Even with the passage of tax revenue generating propositions, the reality is there still won't be enough tax revenue to pay for the various programs funded by the state - let alone to pay for the pension obligations of state and local governments. At some point, fixed and semi-fixed obligations will again crowd out social programs for the most needy and education for our children.

One proposal being quietly circulated is a new Wealth Tax. The idea: as the population ages, more and more retirees won't have outsized incomes, but they will have a lifetime of accumulated wealth, much of which is invested in stocks & bonds & CDs and ETFs and Mutual Funds and other fairly liquid assets. Much is also invested in non-liquid assets such as real property.

Would a modest (e.g., .5% or 1%) Wealth Tax cause a stampede of retirees? Probably not. Retirees who can easily leave already have; others have ties to the community that are not easily broken.

Imagine a 1/2 percent tax on the total value (not the income -- the total value) of your investment portfolio each year. If you have a $500,000 portfolio, you'll pay an extra $2,500. Not earth shattering, but it achieves two separate goals: (1) more tax revenue, and (2) a haircut for the most wealthy.

Are you in favor of a new Wealth Tax?

A $500,000 portfolio at retirement isn't as much as you think. If you retire at 65, $500k will buy you a Life Annuity of somewhere around $2700 per month, guaranteed until you pass away. $2700 per month is not exactly "rolling in the dough", especially if you still have a mortgage or pay rent. So all of a sudden your "modest" tax of 0.5% or $2500 annnually is more like another annual tax of 9-10% of your fixed income. Not to mention that you've already been taxed on this money.

I think this is indeed enough to cause a "stampede" of retirees. I for one wouldn't put up with it.

[cb73]

Depending on how its held, you already pay taxes on either the gain in your portfolio each year, or the gain on the money you withdraw to live on. So double taxation.

And "a haircut for the most wealthy"??? You mean the people who started businesses, working 16 hours a day to grow them? The people who gave you jobs? The people who already support charities and all kinds of needs in the communities?

By all means, let's hurt them some more. Maybe then they'll leave.

When there's no more "them" to get tax money from, the taxes will have to come from you. Did you ever think of that?

[sunshine7793]

I'm 100% infavor of it. Now that the Democrats run CA and the nation I look forward to a total economic collapse occuring on their watch. Any stupid ideas like this should be pursued.

[oldtrader]

Just what the state needs is another crazy tax. The state loses one mid size to large business every day as it is, as companies flee the state.

The state is suffering a double digit loss in taxes every year, as companies and more prosperous people with higher paying jobs leave the state.

The White population has declined to under 40% in the past few years, as White Flight takes place as middle class and upper class whites flee the state taking their businesses and jobs with them.

The middle class are leaving the state, being replaced with poor immigrants. That is the reason the state is in such a serious financial problem.

A crazy idea such as this wealth tax, will accelerate companies and middle class to upper class fleeing the state and the number of companies and jobs leaving the state, leaving only the poor.

[Blue Skies]

I live in Southern California, and constantly hear about the wealthy not paying 'their fare share'.
I am NOT considered wealthy by most peoples standards, and I don't begrudge those people who are. The majority of them earned it. While I do have more than $500,000 in an IRA, I started that account when I was 20 years old. Lived in the same home for 18 years and currently drive a 12 year old car with 140,000 miles. I save about 25% of my after tax income and live responsibly. Frankly, I am tired of paying for other people's mistakes, and sick of hearing about how we need higher taxes.

[18Montclair]

So much wishful thinking for California's demise in this thread.

Its hilarious, and quite pathetic.

California at this very moment has one of the fastest growing economies of any state:

Originally Posted by June 2012

The CA state economy grew by $81 Billion in 2011, approximately half of that coming from tech related industries.

California is now in the highest tier of states as far as annual economic growth.

BEA News Release (GDP by State)

Widespread State Economic Growth in 2011 « U.S. Bureau of Economic Analysis

Originally Posted by oldtrader

The White population has declined to under 40% in the past few years, as White Flight takes place as middle class and upper class whites flee the state taking their businesses and jobs with them.

I wonder if you guys think that by repeating this tired line over and over, it will actually happen.

There is no mass exodus of companies, there is no mass exodus of jobs. That is a fabrication.

[Youthanasia]

Originally Posted by Hard8

A $500,000 portfolio at retirement isn't as much as you think. If you retire at 65, $500k will buy you a Life Annuity of somewhere around $2700 per month, guaranteed until you pass away. $2700 per month is not exactly "rolling in the dough", especially if you still have a mortgage or pay rent. So all of a sudden your "modest" tax of 0.5% or $2500 annnually is more like another annual tax of 9-10% of your fixed income. Not to mention that you've already been taxed on this money.
.

I didn't even know there was such a thing, seems kinda like a pension plan where they bank on you dying before you collect the principle back and thus the profit, in your example, before 14 years.

[expatCA]

Originally Posted by 18Montclair

So much wishful thinking for California's demise in this thread.

Its hilarious, and quite pathetic.

California at this very moment has one of the fastest growing economies of any state:



I wonder if you guys think that by repeating this tired line over and over, it will actually happen.

There is no mass exodus of companies, there is no mass exodus of jobs. That is a fabrication.

Humm, Texas is doing better than CA as is Michigan and OR much better???? And Tennessee, where I have family is 0.1% behind and has way lower taxes.

The problem is that even with such a gain CA is still falling behind in Tax revenue and that is what counts.

[18Montclair]

Originally Posted by expatCA

Humm, Texas is doing better than CA as is Michigan and OR much better????

Yes, but something tells me you and other trolls here that you probably thought California was either 50th or near the bottom. Now you know beyond a shadow of a doubt that all the right wing tv pundits and antagonizers are all WRONG.

The fact is, most of the cheap and nasty and inferior states you all think are doing wayy better are actually NOT doing better at all. Not even close.

The problem is that even with such a gain CA is still falling behind in Tax revenue and that is what counts.

In what parallel universe is state tax revenue more important than overall economic and income growth? What a joke.

If your so concerned about tax revenue, you should be the first to sign up for increased taxes-lol

[expatCA]

Originally Posted by 18Montclair

Yes, but something tells me you and other trolls here that you probably thought California was either 50th or near the bottom. Now you know beyond a shadow of a doubt that all the right wing tv pundits and antagonizers are all WRONG.

The fact is, most of the cheap and nasty and inferior states you all think are doing wayy better are actually NOT doing better at all. Not even close.


In what parallel universe is state tax revenue more important than overall economic and income growth? What a joke.

If your so concerned about tax revenue, you should be the first to sign up for increased taxes-lol

Well your post shows you have no idea. I do not listen to right wing talk radio. I do not listen to left wing talk radio.

Growth in income when accompanied by a drop in Tax revenue, means that revenue will be taxed and then the picture it paints will not be as bright at all. In this universe, revenue to companies or individuals when it isn't enough to keep up with the revenue the State needs, is a recipe for disaster.

Kinda like if your pay check went up 20% but your bills went up 30% and they were already more than you make, it is not quite as pretty a picture as the revenue gain alone seems to indicate. The difference of course is that you can stop spending as much and the State will never quit that, soooooo.. more taxes and fees, etc. What good does that revenue actually do except give the politicians an excuse to take more money from you??