Seymour Flops
Diamond Member
- Nov 25, 2021
- 14,435
- 11,636
Understanding the California Exit Tax
Californians (or ex-Californians) making a certain amount of money who leave the state could soon find themselves paying a small portion of taxes to California, regardless of whether they live there anymore. This proposed “Exit Tax” is part of the California wealth tax proposal wherein new rules are established for those individuals or businesses with over $30 million in assets for a tax year.Understanding What the California Exit Tax Is
The California Exit Tax proposes that if you or your business have been a full-time resident of the state of California and you make $30 million per year (or $15,000,000 if a married taxpayer is filing separately from their spouse), any money that you make from business, income or investments made in the state would be taxed at a rate of 0.4%. This is a one-time tax that is paid upon leaving California.What, they didn't already tax the money as it was being made? Now you also have to pay to leave?
I guess it's like a divorce: They're expensive because they are worth it. If you've got money in Cali, the time to leave is now. They will take it from you to give it to homeless displaced by migrants, and to transgender clinics.