California Bill AB-2088 Wealth tax

leginfo.legislature.ca.gov

3 pointsmattmarcus3 comments

It's a good idea, and necessary, but problematic.

1. Net worth calculations can be challenging to define and calculate with any degree of precision.

2. Net worth does not equate to liquidity or cash availability. Such a law could be crippling to somebody under the circumstances where a person holds many assets held in trust.

I am a much larger fan of taxing inheritance. So much so that I believe all income and wealth taxes should be eliminated in favor of people never inheriting more than $10 million.

Taxing inheritance might sound like a good idea in theory, but in practice it's just a tax on the middle class. The ones you specifically want to target have all kinds of ways to evade inheritance taxes. I am not aware of any country in the entire world where this works as intended.

> The ones you specifically want to target have all kinds of ways to evade inheritance taxes.

Like moving to a better state.

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