The state’s wealthiest 1 percent, for instance, pay 48 percent of its income tax, and the departure of just a few families could lead to a noticeable hit to state general fund revenue.
They have been leaving for years. Especially all the former state employees with Calpers pensions. I suggest taxing those pensions whether they stay or not. Might straighten out the bureaucracy a bit…
“About 25 percent of Californians earning between $130,820 and $304,630, also would see a tax increase, according to the tax policy institute.”
This is what I’m worried about–does know a website that will do estimates for 2018 taxes based on the new laws yet?
If these people are worried about new tax rules cutting into their bottom line then they are not truely wealthy.
What’s a truely wealthy person anyway?
Many of us here!
Exactly. I don’t see Mark Z or Larry P bolting out of California. They are staying put because life (and money) is good here.
Truly wealthy people can afford several homes and say they live in Nevada and still spend time in California… no matter what tax rules are made the wealthy can afford the best advice on how to minimize their taxes. That is why middle and upper middle class always pay the greater percentage burden.
As far as Larry and Mark. They live off net worth
I am sure they pay very little in taxes compared to net worth
Switzerland has a one percent wealth tax to get some money out of the truly wealthy…
Wealthy people escape Calfinornia, truely wealth is unknown since they might have already left without us knowing.
However the biggest risk is that the yet to come wealthy stay out of Calfifornia and not coming here any more
I think a national wealth tax would be a fair way to collect from the super wealthy. Say people with a net worth of $30 m and up … 1% annual tax
The only billionaire I know left California over a year ago.
Even for me, it was easily over $1k/mo savings on base pay. Then it’s 9.2% savings on all RSU and investment income. That’s not a trivial amount of money and makes the gains compound faster.
My friend Ken Fisher lives in Woodside. But has a
100000sf office building in Vancouver, Washington . Probably has a house there and collects his paycheck there. I sure a lot of billionaires think like him.
I remember CA rule is if you have an assigned desk/office, then you need to pay CA income taxes for the days you work in CA. If you don’t, then you don’t need to pay them. We had a VP from another state who was in CA over 50% of the time. There was a small freak out when someone put his name on his office. The name got removed and the office was officially “unassigned”.
So if you work in a coffeehouse and your laptop is on your lap…?
Seems like CA would want to know “days you did business in CA”
No… but…Mark Z did say that if he could do it over again, he wouldn’t come to SV. He thought he had to to get funding, but in retrospect he would’ve done it differently.
That comment alone could keep the next Facebook staying in Boston.
Nah. He made that comment at Harvard. I think it was out of courtesy or something. VC’s in Boston had turned him down. It’s also not just the money. He couldn’t have assembled his dream team back east.
That’s BS. Plenty of talent in Cambridge. 40+ colleges in Boston. He could have done just fine and he knows it.
PS: This proposed law is a nail in the coffin for Amazon moving here. Not that Bezos would’ve anyways, but Pffft. Certainly not now!
But what big start ups have sprung from Boston in the last 10 years? We were taking about Dropbox the other day and it’s another example of founder moving from Boston to Silicon Valley to make it big.
I wasn’t thinking about engineers in Mark Z’s dream team. I was thinking about people like Sean Parker and Sheryl Sandberg.
I can’t see them all, but top 5 are biomedical.
Fact is though, that if biomed can be successful there, so can a software company. Plenty of software engineers are still there. MIT is 1/3 EE/CS graduates, and many other majors end up working as software engineers.
And some companies are bought by larger ones instead of IPOing.