By Lindsey Holden
A California Democrat is renewing his efforts to tax wealthy residents’ net worth as a potential solution to closing the state’s $68 billion spending gap.
Democratic Assembly Speaker Robert Rivas’ new approach to running bills through legislative committees means the proposal will get a hearing.
The bill from Assemblyman Alex Lee, D-San Jose, will be heard in a legislative committee on Wednesday, a few hours after Gov. Gavin Newsom is expected to announce his fiscal 2025 budget proposal. Assembly Bill 259 would institute a 1% tax on the net worth of residents with more than $50 million in assets, with a 1.5% bracket for those with more than $1 billion.
The current top income tax rate, levied on millionaires, is 13.3%. The Assembly Revenue and Taxation Committee, which will hear testimony on the plan, did not take up Lee’s bill last year after he introduced it.
Source: Sacramento Bee
