It's impossible to overstate how terrible an idea this is. Moving out of state is a cake walk. You can even wave to your friends from the other side of Lake Tahoe. California is sincerely begging to implode its entire tax base at the outset of a looming budget crisis.https://twitter.com/sonyasupposedly/status/1294097843011989504 …
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But look, people with $30m are going to be a rounding error on this thing. The people you have to worry about are the billionaires who are already spending their new remote workdays a couple hours up the coast and stand to save millions more if they just move an hour further.
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Exactly. And why build a start up in CA, when if you are successful, you'll have to sell illiquid private shares worth .4% of your company EACH YEAR to pay the tax. Ditto for early employees with OPTIONS. That's a nightmare.
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“Liquidity-constrained taxpayers with ownership interests in hard-to-value assets and business entities, such as startup businesses, shall be able to elect for an unliquidated and deferred tax liability to be attached to these assets”
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