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

Link: https://www.wsj.com/articles/a-california-plan-to-chase-away-the-rich-then-keep-stalking-them-11608331448?st=eciwz3atsygqzun&reflink=article_email_share


California’s Legislature is considering 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. Even those who move out of state would continue to be subject to the tax for a decade — a provision that calls to mind the Eagles’ famous “Hotel California” lyric: “You can check out any time you like, but you can never leave.”

The California Constitution probably allows a statewide wealth tax on residents, but any effort to create a tax capable of reaching across state borders is likely to run afoul of the U.S. Constitution. Taxing someone who spends only 60 days in the state in any single year — and extending that tax over an ensuing decade — would be something new under the sun.

Author(s): Hank Adler

Publication Date: 18 December 2020

Publication Site: Wall Street Journal