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“I’m moving out of state”: employees are trying to avoid California income tax

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Re: “I’m moving out of state”: employees are trying to avoid California income tax

#11

Post by kuhhk »

AlexandrB wrote: post #3

> The state of California treats capital gains just like any other income, levying a 13.3 percent state tax on sales of stock. For someone sitting on tens of millions of dollars in private stock — life-changing money for some — it’s not a small concern. Yes, it literally is! It's 13% - that's about the same as sales tax in many places and nowhere near AOC's 70% tax. This is greed, plain and simple. 99% of the world w…

>It's 13% - that's about the same as sales tax in many places

No, not really.. You're free to choose states with sensible department of revenues.

Wyoming has a 4-6% sales tax, nowhere near the 13% you're arguing about. If capgains of 13% is levied upon 10mil, that's 1.3mil.... while Wyoming's 4-6% sales tax is (obviously less than half that) only levied upon actual purchases (which in practice is way lower).

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#12

Post by cheeseomlit »

outside1234 wrote: post #2

Good luck with that - if you have a California license plates, drivers license, or they can prove you show up pretty frequently to a California located job - you are going to get caught doing this and fined extensively. Also, WTF: You took advantage of all of the infrastructure of a state to get rich and now you don't want to contribute back? Shame on you and may karma come around for you.

Yeah shame on them for not taking their extortion in stride. Their contributions are essential for all that great infrastructure like the new high speed rail between SF and San Diego, oh wait..

https://www.latimes.com/local/lanow/la-me-bullet-train-calif...

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#13

Post by seattle_spring »

zdragnar wrote: post #6
AlexandrB wrote: post #3

> The state of California treats capital gains just like any other income, levying a 13.3 percent state tax on sales of stock. For someone sitting on tens of millions of dollars in private stock — life-changing money for some — it’s not a small concern. Yes, it literally is! It's 13% - that's about the same as sales tax in many places and nowhere near AOC's 70% tax. This is greed, plain and simple. 99% of the world w…

> AOC's 70% tax Also doesn't apply to capital gains.

Also only would apply to income over $10 million.

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#14

Post by lightedman »

octonion wrote: post #8
tenpies wrote: post #4

Earlier quoted context omitted.

And 99% of the world would act in the same way if they had the luxury of that problem. I understand why Leftist populists love attributing some sort of exceptional immorality to the wealthy, but people act on incentives. Give them an incentive to leave and they will leave.

If you live in California, you obey California laws or you go to California jail. If you don't agree with what California has decided is necessary for a healthy society, you have states like Mississippi and Louisiana to choose from. Good luck finding a high-paying job there.

"Good luck finding a high-paying job there."

I guess you have no clue what jobs actually exist in those states. They're the same jobs that exist in every other state.

Then to boot, there are plenty of high-paying jobs which exist in those states which generally do not exist in many others, like offshore oil rig jobs.

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#15

Post by sigi45 »

crisdux wrote: post #5
outside1234 wrote: post #2

Good luck with that - if you have a California license plates, drivers license, or they can prove you show up pretty frequently to a California located job - you are going to get caught doing this and fined extensively. Also, WTF: You took advantage of all of the infrastructure of a state to get rich and now you don't want to contribute back? Shame on you and may karma come around for you.

Let's be a bit honest here. California public infrastructure has hardly contributed to the windfall people are getting due to their work in the tech industry.

Than don't work there. Or try to influence how those riches are spend.

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#16

Post by pliny »

>On the other hand, Silicon Valley money is made in California and draws on California services. Employees commute to work on taxpayer-funded roads and many studied at taxpayer-funded schools. And one extreme example: When a gunman shot four people on the campus of YouTube last spring, it was San Bruno police that responded to the scene.

This argument is scale invariant, you could say that any level of taxation justifies any level of services. The moral argument for not aggressively minimizing your tax burden has to pass through the question of how effective the state is at spending the money it collects, and so it must also depend on the question of how other states manage to do the same work the California Government does (having schools, roads and police) with much lower rates of income and sales tax and a much less smaller tax base.

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#17

Post by castlecrasher2 »

AlexandrB wrote: post #3

> The state of California treats capital gains just like any other income, levying a 13.3 percent state tax on sales of stock. For someone sitting on tens of millions of dollars in private stock — life-changing money for some — it’s not a small concern. Yes, it literally is! It's 13% - that's about the same as sales tax in many places and nowhere near AOC's 70% tax. This is greed, plain and simple. 99% of the world w…

Is the article disagreeing with you, or are you saying a couple millions of dollars taxed on a stock sale is, in fact, a small concern?

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#18

Post by 40acres »

crisdux wrote: post #5
outside1234 wrote: post #2

Good luck with that - if you have a California license plates, drivers license, or they can prove you show up pretty frequently to a California located job - you are going to get caught doing this and fined extensively. Also, WTF: You took advantage of all of the infrastructure of a state to get rich and now you don't want to contribute back? Shame on you and may karma come around for you.

Let's be a bit honest here. California public infrastructure has hardly contributed to the windfall people are getting due to their work in the tech industry.

Does the UC system not count as "public infrastructure"?? I wouldn't be surprised if the UCs are the core driver for a lot of California's growth over the decades.

Re: “I’m moving out of state”: employees are trying to avoid California income tax

#19

Post by turc1656 »

The article is either slightly disingenuous or just structured less than ideally: "It’s perfectly legal, but is it right?" but then shortly after..."A post office box or a studio apartment somewhere on the east coast? They’ve seen it before. Claiming that your significant other and kids live in California — but you don’t? Good luck with that."

That's not legal tax avoidance. That's downright tax evasion and is a crime. If you are making false claims on your tax returns that's flatly illegal. Full stop. Do not pass go. Do not collect $200. Some of these claims made aren't very debatable or up to much interpretation. Saying you live somewhere but you don't is lying and when done on official documents that's illegal and a form of fraud - in this case evasion. You can't claim to live on the East coast but then somehow work in Silicon Valley everyday and your family lives in CA.

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