For Immediate Release, January 19, 2023
Contact: David Kline (916) 893-2614 or [email protected]
California Taxpayers Association Robert Gutierrez released the following statement in response to today’s announcement by “wealth tax” proponents that they are reintroducing their proposal to tax the assets of Californians:
“Under California’s tax structure, 70 percent of the state’s personal income tax revenue comes from the top 5 percent of earners. If these taxpayers were to leave for any of the 49 states with lower taxes, the wealth tax would jeopardize California’s largest revenue stream.
“With the state facing budget uncertainty and possible recession, California cannot stand to lose tax dollars, investments, or jobs.
“The wealth tax also would be impossible to administer with any semblance of fairness. When would the state determine the tax on stocks, whose value can change dramatically from minute to minute? Would California’s tax auditors travel around the globe every year to attempt to locate and verify the value of one-of-a-kind artwork, vehicles, iconic Hollywood props, and other items whose market value can’t be known with any degree of certainty? Would wealthy individuals stay in California and wait for these questions to be answered?
“Like the prior two failed versions, the latest wealth tax proposal should be rejected.”