The trend in Wagner cards

[Exhibitman]

CA has no estate tax. 0%

[raulus]

Originally Posted by Exhibitman

CA has no estate tax. 0%

I promise this isn't political, but...

I have a hard time believing it will stay that way forever. Of course, it's been that way for a while now, so maybe you'll get lucky.

[Exhibitman]

Originally Posted by raulus

I promise this isn't political, but...

I have a hard time believing it will stay that way forever. Of course, it's been that way for a while now, so maybe you'll get lucky.

I don't think it is going back. We have too many large ranches, orchards, vineyards and farms. At worst, we might go back into lock step with the Federal standard, which is pretty much what we do with similar taxes that have high thresholds.

[Peter_Spaeth]

What do ranches and orchards have to do with it, don't follow?

[raulus]

Originally Posted by Peter_Spaeth

What do ranches and orchards have to do with it, don't follow?

They’re worth a lot of money and they’re usually family businesses, so they get passed down. And therefore it’s a hot button issue for estate taxes.

[Peter_Spaeth]

Originally Posted by raulus

They’re worth a lot of money and they’re usually family businesses, so they get passed down. And therefore it’s a hot button issue for estate taxes.

OK. But not clear to me why those people would object more to estate taxes or have any more political clout than the countless other wealthy people in the state.

[raulus]

Originally Posted by Peter_Spaeth

OK. But not clear to me why those people would object more to estate taxes or have any more political clout than the countless other wealthy people in the state.

My sense is that family farms have long been the poster child for the anti estate tax movement. It’s a very appealing approach optically, and no politician wants to be seen as being against farmers, small businesses and cute farm animals.

[puckpaul]

Originally Posted by Peter_Spaeth

OK. But not clear to me why those people would object more to estate taxes or have any more political clout than the countless other wealthy people in the state.

Lots of people object to the retaxing of wealth in inheritance, but the problem with farms etc. is that they typically are worth a lot more than the cash flow generated and in death a high tax on estate transfer would force many/most to sell to pay the tax. Not a popular option for a long-time family business, and one that is perceived as a societal good.