Several states plan to raise taxes to tackle coronavirus crisis

State and local governments, struggling to raise money during the economic crisis caused by the COVID-19 pandemic, are steadfast in their push to raise taxes to fill budget holes. Writes about it Fox Business.

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It is proposed that in California, wealthy residents of the state should not pay a fixed amount of tax, as was the case in the past, but based on the net worth of their companies. This approach can dramatically increase the state budget revenues.

"The California Wealth Tax will boost California's critically needed income by creating a fairer tax structure," said California Democratic Legislator Rob Bonta, who co-sponsored the bill.

It proposes to tax 0,4% of owners of equity capital in excess of $ 30 million. California has 30 residents. Fearing that this could move wealthy Californians out of the state, the bill calls for the tax to continue to apply to people based on how many of the previous 400 years they have lived in the state.

Likewise, new residents who made their fortune before moving to California will have to pay based on how long they have lived in the state, and this amount will continue to grow over the next 10 years.

Californians will vote this November to end multi-year protection of commercial and industrial property. Since 1978, tax revaluations of the fair market value of real estate in California have been made only when the property was sold or under construction. Otherwise, estimates are limited to an increase of 2% per year. The new measure, if approved, would make exceptions to this rule for industrial and non-agricultural commercial property, while requiring it to be reviewed to fair market value at least every three years.

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New Jersey Governor Phil Murphy also intends to resort to such innovations, in particular, to raise the tax for millionaires to 10,75% on income in the amount of $ 1 to $ 5 million.

Murphy has unveiled the state's fiscal 2021 budget, which is designed to help close the nearly $ 6 billion fiscal hole through various revenue-raising measures.

“This budget proposal is not only about getting New Jersey back on track, but getting where we need to be. This can be done by building a new economy that will foster the growth of our middle class and work for every single family, ”Murphy said.

Murphy also wants to raise the $ 48 firearms license fee and $ 95 firearm owner ID fees.

Chicago Mayor Laurie Lightfoot is expected to release the 2021 budget forecast next week. In June, she said that the increase in property taxes is so far viewed as a measure that could help solve budget problems, including the deficit in 2020, which at one time was projected at almost $ 700 million.

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In Seattle, a recent measure, approved by the City Council, will add a tax for companies with at least $ 7 million in annual income. JumpStart Seattle suggests raising taxes for businesses. Seattle companies will pay taxes of up to 2,4% on every employee who makes more than $ 150 a year.

In New York, meanwhile, a group led by former Democrat Governor David Paterson is opposing tax hikes. Campaigners for the future of New York argue that there are better ways to improve the state's finances than simply taxing the rich.

The group plans to launch grant programs for women-owned and minority-owned businesses and suggested that New York City's income could be increased by blocking certain streets to traffic and renting out space to restaurants and shops that might use the space. for the provision of outdoor services.

New York is not the only administrative division facing resistance to tax increases. In Nashville, Tennessee, where property taxes were raised by 34%, 20 people signed and sent a petition to the governor's office urging authorities to include the tax increase on a special ballot.

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