A group of California state lawmakers have proposed a wealth tax that would assess a levy of 0.4% on all net worth above $30 million. The tax would exclude directly held real estate.
It’s estimated to affect 30,400 residents and raise an estimated $7.5 billion for the general budget.
Oakland Democrat Rob Bonta, the lead sponsor of the proposal, says such a tax is justified because of the large budget deficit the state is facing due to the economic downturn brought about by the Coronavirus.
“We can’t simply rely on austerity measures,” to close it, Bonta said.
He also said in addition to the wealth tax, he would also like to see the “millionaires tax” proposed in July pass. That bill would raise taxes by a graduated scale on California incomes starting at $1 million and would bring California’s top-line rate to 16.8%, up from the already highest-in-the-nation 13.3%.