Wealthy Taxpayers Could Take a Hit in These 8 States

[mickeyd]

If you are wealthy (whatever that is) you may be asked to participate in your states wealth redistribution plan.

The eight states that make up Fund Our Future hold the lion’s share of the nation’s billionaires, according to Frame. Washington state has 97 billionaires, Frame said, “many more billionaires than we thought we did.”

Eight of the wealthiest people in the U.S. reside in Washington state, Frame said, and their individual wealth ranges from $3.3 billion to $151 billion.

https://www.thinkadvisor.com/2023/0...=dailywire&utm_content=20230120&utm_term=tadv

 

[audreyh1]

So you have to run the slideshow to find the 8 states? Too much clickbait.

Anyway I can guess well enough.

 

[braumeister]

Sign me up! I would love to be wealthy enough to be hit by such a deal.

 

[Ronstar]

Sign me up! I would love to be wealthy enough to be hit by such a deal.

+1. Need to have assets over $1 billion in Illinois to pay the tax. According to the internet, Illinois has 24 billionaires. Not sure how much tax they will generate from 24 people.

 

[MichaelB]

Just to be clear, this isn’t any state plan, it’s an idea advocated by a group that resides in 8 states.

 

[audreyh1]

Just to be clear, this isn’t any state plan, it’s an idea advocated by a group that resides in 8 states.

Thanks!

 

[cathy63]

Here's an article about the plan from WaPo. The slideshow above adds Minnesota to the list in this article.

https://wapo.st/3Hkgteg

A group of legislators in statehouses across the country has coordinated to introduce bills simultaneously in seven states later this week, with the same goal of raising taxes on the rich.

 

[djsander]

The Beverly hillbillies will be loading up and moving back to Tennessee!

 

[CardsFan]

So, another proposition to "stick it to the ultra-rich" that will generate very nominal revenue for the states involved.

Of course these people can "move" whenever they feel like it.

This is politics, not tax policy.

 

[Chuckanut]

If you think this will only tax the ultra rich take a look at what is going on in Washington state where an excise tax on capital gains of the ultra rich has been on the books for only two years. The original bill taxed gains over $250,000 at 7%. Note the proposed changes below.

https://www.seattletimes.com/opinion/an-excise-tax-on-income-is-detrimental-to-was-future/

“The initial excise tax is 7%, and targets higher earners, but there is already a bill in front of the 2023 Legislature to raise the tax to 8.5% and lower the payment threshold to $15,000 of capital gains income — while the case is still in front of the courts! That is just the beginning. If the court allows it, you can expect cities and counties in our state to also create “excises” taxes that they can collect outside their geographic boundaries. “

Will the state SC throw it out. I don’t know.

 

[CardsFan]

If you think this will only tax the ultra rich take a look at what is going on in Washington state where an excise tax on capital gains of the ultra rich has been on the books for only two years. The original bill taxed gains over $250,000 at 7%. Note the proposed changes below.

https://www.seattletimes.com/opinion/an-excise-tax-on-income-is-detrimental-to-was-future/

“The initial excise tax is 7%, and targets higher earners, but there is already a bill in front of the 2023 Legislature to raise the tax to 8.5% and lower the payment threshold to $15,000 of capital gains income — while the case is still in front of the courts! That is just the beginning. If the court allows it, you can expect cities and counties in our state to also create “excises” taxes that they can collect outside their geographic boundaries. “

Will the state SC throw it out. I don’t know.

So maybe the original proposal was just to get the camel's nose under the tent. I am SHOCKED that politicians would do that.

 

[rk911]

+1. Need to have assets over $1 billion in Illinois to pay the tax. According to the internet, Illinois has 24 billionaires. Not sure how much tax they will generate from 24 people.

when the states don't realize the $ they expected to reap (wealthy people can move) they'll simply start lowering the bar. didn't that happen in NYS years ago? i seem to recall the guv (Cuomo?) asking people to come back to NY.

 

[Ronstar]

when the states don't realize the $ they expected to reap (wealthy people can move) they'll simply start lowering the bar. didn't that happen in NYS years ago? i seem to recall the guv (Cuomo?) asking people to come back to NY.

It won't take much of a push to get the wealthiest Illinois people to move. The richest guy moved out of Illinois last year along with his 1000 employee company. And that was before this proposed tax on the wealthy.

 

[W2R]

"Hawaii, Minnesota, New York, California, Maryland, Washington, Connecticut and Illinois"

Somehow I didn't really expect that anybody would be looking at the wealthy of Louisiana to come up with a whole bunch of money to use for wealth redistribution.

That's OK, we may have only one billionaire, but we don't have to deal with snow and ice.....

 

[donheff]

If you think this will only tax the ultra rich take a look at what is going on in Washington state where an excise tax on capital gains of the ultra rich has been on the books for only two years. The original bill taxed gains over $250,000 at 7%. Note the proposed changes below.

https://www.seattletimes.com/opinion/an-excise-tax-on-income-is-detrimental-to-was-future/

“The initial excise tax is 7%, and targets higher earners, but there is already a bill in front of the 2023 Legislature to raise the tax to 8.5% and lower the payment threshold to $15,000 of capital gains income — while the case is still in front of the courts! That is just the beginning. If the court allows it, you can expect cities and counties in our state to also create “excises” taxes that they can collect outside their geographic boundaries. “

Will the state SC throw it out. I don’t know.

DC taxes all CG's at their 8.5% state income tax level.

 

[CaptTom]

Isn't the tax rate on the lowest income wage earners something like 10%? I guess they just don't have the same political clout as billionaires.

 

[CRLLS]

Just to be clear, this isn’t any state plan, it’s an idea advocated by a group that resides in 8 states.

How exactly is this not a state plan? In lllinois, It is more than just a "plan" It was/may be actual legislation. Illinois' version of the "plan", is called "Extremely High Wealth Mark-to-Market Tax Act" and was entered into both the houses of the state back in 2021. It did die in committee. According to the article, it appears that it is being resurrected in a slightly modified form. I read partway thru the first clickbait article and found that each state has their own version with significantly different spins. The takeaway I got was that there is no one "think tank" plan. Rather, the article looked at the various states and anything that looked a tax triggered on one's wealth was combined for the article.

 

[Montecfo]

These states certainly have a robust disdain for the successful. You know, if someone is walking home from work and gets mugged, you can be assured they will get home a different way next time.

 

[Car-Guy]

^^^^
Yep

 

[aja8888]

These states certainly have a robust disdain for the successful. You know, if someone is walking home from work and gets mugged, you can be assured they will get home a different way next time.

I think they like "the successful" so they can tax their successes. They really don't want them to leave.

 

[MichaelB]

How exactly is this not a state plan?

At any given time there are always thousands of ideas, some of which progress to proposed bills, but very few are actually given legitimate consideration, and even fewer reach the floor for full votes. Most are little more than partisan rhetoric or symbolic acts. A state plan would be a program or legislative action that has been approved and is underway, or at least on the path toward that status.

There is no evidence that the article in the OP has reached that possibility. Until then it’s another proposal among many, not a plan, and useful here just to engage in anti-tax rants and rhetoric.

 

[Montecfo]

I think they like "the successful" so they can tax their successes. They really don't want them to leave.

what could go wrong?

 

[Ronstar]

At any given time there are always thousands of ideas, some of which progress to proposed bills, but very few are actually given legitimate consideration, and even fewer reach the floor for full votes. Most are little more than partisan rhetoric or symbolic acts. A state plan would be a program or legislative action that approved and underway, or at least on the path toward that status.

There is no evidence that the article in the OP has reached that possibility. Until then it’s another proposal among many, not a plan, and useful here just to engage in anti-tax rants and rhetoric.

I understand that Illinois hasn't formally approved a wealth tax plan, but 2 high ranking Illinois politicians have their own "plans" for tax increases.

One from Governor Pritzker - a graduated income tax plan, and Rep Guzzardi's "wealth tax" plan.

Granted neither of these plans have been formally introduced in the new Illinois legislative session that is just starting, but these are still plans by Illinois politicians.

In Illinois, a politician's tax plan would have to be formally introduced as a bill, the bill would have to pass by vote, and the Governor would have to sign into law before new taxes are put into place.

That could take a while, but I suspect that something along these lines will happen in Illinois.

I have not seen the term "state plan" in any of my readings. Once a politician introduces his or her plan as a bill, it remains a bill until it becomes law or until the bill gets killed. But a politician's plan is still their plan IMO.

https://news.wttw.com/2023/01/19/wealthy-illinois-residents-would-pay-more-income-tax-under-new-proposals

How a bill becomes law in Illinois:
https://illinoispsychology.org/58/

 

[ncbill]

the very wealthy will just domicile in a no-tax state like TN.

they can still keep their former residence, maybe move it into a trust (e.g. "79 Wistful Vista, Peoria, IL")

 

[MichaelB]

I understand that Illinois hasn't formally approved a wealth tax plan, but 2 high ranking Illinois politicians have their own "plans" for tax increases.

One from Governor Pritzker - a graduated income tax plan, and Rep Guzzardi's "wealth tax" plan.

Granted neither of these plans have been formally introduced in the new Illinois legislative session that is just starting, but these are still plans by Illinois politicians.

In Illinois, a politician's tax plan would have to be formally introduced as a bill, the bill would have to pass by vote, and the Governor would have to sign into law before new taxes are put into place.

That could take a while, but I suspect that something along these lines will happen in Illinois.

I have not seen the term "state plan" in any of my readings. Once a politician introduces his or her plan as a bill, it remains a bill until it becomes law or until the bill gets killed. But a politician's plan is still their plan IMO.

https://news.wttw.com/2023/01/19/wealthy-illinois-residents-would-pay-more-income-tax-under-new-proposals

How a bill becomes law in Illinois:
https://illinoispsychology.org/58/

A work friend, when asked for specific plans, used to say “I have a plan to make a plan”. That’s what this (OP link) sounds like. Elected officials and aspirants always have a plan - but it is little more than a plan to make a real plan should the opportunity arise.

My only point is this thread is a straw man. There are always lots of people with ideas on how to raise taxes, and just as many with ideas to do the opposite. Most never see the light of day, which is a good thing.