Millionaire’s Tax Bill is Introduced

(Sacramento, CA) – Assembly Member Miguel Santiago (D-Los Angeles) is introducing a bill for a millionaire’s tax. The bill AB 1253 is jointly authored by Assembly Member Lorena Gonzalez (D-San Diego), Assembly Member Ash Kalra (D-San Jose) and Assembly Member Alex Lee (D-Milpitas). Prominent supporters of the bill include the California Teachers Association (CTA), Courage Campaign and Patriotic Millionaires. This bill would impose a surcharge on taxable income over $1 million to generate much needed revenue for California. AB 1253 will only impact less than 1% of California’s tax filers and would generate billions in new revenue each year.

“This is about investing in an equitable recovery,” said Assembly Member Santiago. “It is no secret that communities that were hurting before are more devastated economically due to the pandemic. We have to think bigger about the way we recover. Those who are making extreme amounts of money need to pay their fair share to help the majority of Californians who are hurting.”  

“The combined wealth of US billionaires grew 44.6% last year – they made an additional $1.3 trillion during the year that 80 million Americans lost their jobs. California is home to more billionaires than any other state, and has more unicorn companies (aka those with an over $1 billion valuation) than the rest of the country combined. Yet the vast majority of Californians, especially low to middle income earners, have borne the brunt of the global pandemic – unable to pay the rent, unable to get childcare, unable to get online, unable to eat, and unable to make ends meet,” said Assembly Member Wendy Carrillo (D-Los Angeles). “COVID-19 laid inequity bare for all to see, and if we are bound by a mandate to Build Back Better, then we need to act. There is no excuse for allowing the inequity in our tax system to persist. We need a California for all, not just a California for some.”

“California was already one of the most economically unequal states in the country before the pandemic, and it’s only been exacerbated,” said Assembly Member Lee. “It’s more important than ever for California to make bold choices and be a model for equitable recovery.

“Working and middle class families need a break. The wealthiest in our society need to contribute their fair share if we're going to achieve a just and sustained economic recovery for all Californians," Assembly Member Gonzalez said. "AB 1253 is a crucial step in tackling the outrageous level of income inequality in our state that's only gotten worse during the COVID-19 crisis.”

“We know wealth disparity has only been exacerbated by COVID-19 and economic inequality has continued to worsen among already-vulnerable communities,” said Assembly Member Kalra. “As the wealth gap widens, adopting a modest progressive wealth tax is necessary to finally reform a broken system where those living paycheck-to-paycheck too often pay more in taxes than the wealthiest.”

“California has the fifth largest economy in the world, and more than its share of millionaires, and yet we continue to rank near the bottom of the states in the nation in per pupil spending,” said E. Toby Boyd, president of the California Teachers Association. “This bill helps permanently close the gaps in income inequality that have been widening since before the pandemic, helps restore fairness to our tax code, and brings resources to our students and the classroom for years to come.”

“In California, we have enough wealth to ensure that every person has the resources and support they need to succeed,” said Irene Kao, Executive Director of the Courage Campaign. “But the vast majority of that wealth is concentrated in the hands of only a small percentage of Californians. We need to ensure that millionaires who benefit the most from this unequal system contribute to the state and the communities. We must have the Courage to support AB 1253 – the Millionaire’s Tax, so that we can rebuild California in a fair and equitable way.”

"Last year, California’s wealthiest residents enjoyed substantial gains while a vast majority of the state continued to see poverty and wealth inequality skyrocket to unsustainable levels,” said Jacqueline Boberg, a member of the Patriotic Millionaires. “The growing gap between the haves and the have-nots continues to be a stain on our wonderful state. The only way to realign our state with the values we hold dear is for leaders to step up and ask the wealthy folks who have prospered, like myself, to pay their fair share."

California faced deep social, economic, and racial inequities prior to the pandemic. COVID-19 has only exacerbated these inequities. The Legislative Analyst office recently predicted California would face up to a $20 billion deficit post pandemic. A progressive tax increase on the rich is necessary to address the anticipated deficit and to build back Californian more equitably.

Assembly Member Miguel Santiago is the Chair of the Assembly Committee on Communications and Conveyance and Chair of the Assembly Select Committee on Los Angeles County Homelessness. He also sits on the Assembly Committees on Public Safety, Health, Higher Education and Utilities and Energy. He represents the 53rd District composed of the cities of Los Angeles, Huntington Park, and Vernon.