7 ms·
> CA at some point will try to tax unrecognized capital gains Where is the evidence for this? Effectively, Elon has avoided future California capital gains t
by atomi 6y ago
> CA at some point will try to tax unrecognized capital gains
Where is the evidence for this?
Effectively, Elon has avoided future California capital gains taxes by moving. Those are the facts of his move.
Personally, I would rather pay a few points extra on capital gains and income taxes to avoid Texas.
Just look at what the Texas AG is doing right now:
https://www.dallasnews.com/news/politics/2020/12/08/texas-ag-paxton-challenges-election-result-in-four-key-battleground-states/ https://www.dallasnews.com/news/politics/2020/12/08/texas-ag...
- misiti3780 6y agoHere is the thing though - it's not just a "few extra points". By my calculation its 13.3% more living in California in state income tax savings alone. That is a huge amount of money for Elon, but is also a huge amount of money for people working on a SV salary. It could be more than a mortgage payment. There are probably additional savings with less regulation etc California is not a state anyone should want to do business in in 2020.
- ohazi 6y ago> for people working on a SV salary Most Californians don't get to keep their SV salary when they move to Texas.
- misiti3780 6y agoWhat data are you basing that on - Austin is not cheap, and it's probably getting a lot more expensive now that everyone is moving there.
- pchristensen 6y agoI looked at Austin a few years ago, and after seeing the salaries I could find vs the cost of housing for 5 in a highly rated school district, I didn't even apply anywhere.
- bayesbot 6y agoI'm guessing it's a good option if you already have a good amount of home equity from a higher paying area though.
- reducesuffering 6y agoThat's a disingenuous representation of how much extra state income taxes are paid. 13.3% is the rate for single income above $1,000,0000. A richly paid SV worker making $500k single pays 8.75% to the state of CA effectively.[0] [0] https://smartasset.com/taxes/california-tax-calculator#6NtLsojWoj https://smartasset.com/taxes/california-tax-calculator#6NtLs...
- misiti3780 6y agoFair, then maybe we can agree on the following: "If your household income is > 1MM and you live in California, it is not surprising that you would want to leave"
- sonotmyname 6y agoWe're talking about Elon Musk here - effectively all of his income is going to be at the 13.3% rate
- robszumski 6y agoAside: California is notorious for going after income that was "earned" in CA even if you no longer reside in the state. They'll still be collecting $$ from him for years to come.
- Darmody 6y agoCapital gains and the new magical tax on the wealth that democrats want. They don't have enough taxing you for what you earn so they decided to tax you for what you're worth.
- boardwaalk 6y agoThe big cities are something like 70/25 blue/red as of 2020, and you can be pretty sure they despise Ken Paxton et al. If you want to expand “the area you live in where people agree with me” to states the size of Texas/California, you can do that. But it seems a little silly to me. And you’ll have made a difference via voting when/if Texas votes these people out.
- threeseed 6y agoTexas AG is just doing that to get a Presidential pardon. It's pretty despicable that he is willing to throw the country under the bus for his own personal benefit.
- chillwaves 6y agoWhile half the country cheers on. How many of those half actually believe in what's happening and how many are just along for the ride, pursuit of power above all else? It's sickening how a coup attempt is being normalized by our media.
- mlindner 6y agoCalifornia keeps trying to get "wealth taxes" on the ballot. That is exactly taxing of unrecognized capital gains.