Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, December 28, 2020

A California Plan to Chase Away the Rich, Then Keep Stalking Them

Estate planning"A proposed wealth tax would apply for a decade to anyone who spends 60 days in the state in a single year." 

The California Legislature is considering applying a wealth tax on "residents, part-year residents, and any person who spends more than 60 days inside the state's borders in a single year." The wealth tax would also apply to those that move out of state for a decade.

Although the new wealth tax plan would likely be within the confines of the California Constitution, it would likely be unconstitutional per the U.S. Constitution to reach across state borders to tax citizens. 

This tax plan would apply to out-of-state college students going to school in California, those having a major medical procedure in California needing an extended stay and those that vacation in California during the cold winter months on the East coast. 

The proposed wealth tax would place high burdens on a large number of people and that number would increase greatly every year. 

See Hank Adler, A California Plan to Chase Away the Rich, Then Keep Stalking Them, Wall Street Journal, December 18, 2020.

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention. 

https://lawprofessors.typepad.com/trusts_estates_prof/2020/12/a-california-plan-to-chase-away-the-rich-then-keep-stalking-them.html

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