California To Hit Startup Founders with Big Retroactive Tax Bills • Hacker News Board

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#21

Post by ceejayoz » Tue, Jan 15, 2013, 5:11 PM UTC

legitsource wrote: post #3

I would not have thought that retroactive tax bills were legal. Are there any other common examples or is this a new precedent?

Virtually every year TurboTax tells me I can't submit my return because they're still writing the rules for the year that just finished.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#22

Post by preinheimer » Tue, Jan 15, 2013, 5:12 PM UTC

As a business owner this crap terrifies me. Washington State was looking at changing their tax code retroactively to get more money from Microsoft, luckily level heads (and I might presume, extensive lobbying) prevailed.

I can't plan today for what yesterday's laws will be tomorrow.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#23

Post by petercooper » Tue, Jan 15, 2013, 5:12 PM UTC

rayiner wrote: post #12

binarymax wrote: post #7

ex post facto, surely?

The prohibition against retroactive laws only applies to criminal laws. See Calder v. Bull (1798).

So, theoretically speaking, could California retroactively increase the state income tax and claim billions from most of the populace?

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#24

Post by aresant » Tue, Jan 15, 2013, 5:14 PM UTC

legitsource wrote: post #3

I would not have thought that retroactive tax bills were legal. Are there any other common examples or is this a new precedent?

The funny thing is that this isn't even the only one that CA is imposing, the entirety of Prop 30 (voted on in Nov 2012) is retroactive for the entire tax year.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#25

Post by macey » Tue, Jan 15, 2013, 5:15 PM UTC

gcv wrote: post #15

Does this apply to a Delaware corporation which happens to have offices ("do business") in California?

I doubt it - although you would still need to pay CA franchise tax ($800 minimum yearly). That's always been the case.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#26

Post by ceejayoz » Tue, Jan 15, 2013, 5:19 PM UTC

rayiner wrote: post #19

Come to New York! We're rolling in so much finance money we don't need to hit up small businesses.

As someone who works for a small business in New York... hahahahaha. Ha. Haha.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#27

Post by forgingahead » Tue, Jan 15, 2013, 5:20 PM UTC

petercooper wrote: post #23

rayiner wrote: post #12

Earlier quoted context omitted.

The prohibition against retroactive laws only applies to criminal laws. See Calder v. Bull (1798).

So, theoretically speaking, could California retroactively increase the state income tax and claim billions from most of the populace?

This is exactly what happened when Prop 30 passed last year:

http://allthingsd.com/20121204/what-proposition-30-means-for...

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#28

Post by slajax » Tue, Jan 15, 2013, 5:22 PM UTC

nvk wrote: post #2

Come to Toronto!

Even better, come to Vancouver. You get SRED and no snow. Just rain.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#29

Post by brown9-2 » Tue, Jan 15, 2013, 5:23 PM UTC

I'd be curious to know how many California taxpayers this decision affects.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#30

Post by kyrra » Tue, Jan 15, 2013, 5:25 PM UTC

rayiner wrote: post #19

Come to New York! We're rolling in so much finance money we don't need to hit up small businesses.

Your state's gun laws prevent me from ever living there.