California SB378

Have you heard of California Senate Bill 378?

What are your thoughts on this proposed bill to create a California estate tax modeled on the federal estate tax, but with a lower exemption rate of $3.5 million ($7 million for a married couple)?

According to Senator Wiener's website: "The tax phases out at the current federal estate tax exemption — $11.4 million ($22.8 million for a married couple) - thus avoiding double taxation. SB 378 contains the same exemptions as the federal estate tax (e.g., transfers to a surviving spouse and family farm exemptions) and the same tax rate (40%).

SB 378 directs all collected estate taxes to a newly created special fund: the Children’s Wealth and Opportunity Building Fund. This new fund directs estate tax proceeds toward programs and services that directly address and alleviate socio-economic inequality and build assets among people who have historically lacked them, including helping low-income children build wealth through savings accounts."

If this bill is passed by the legislature it will be presented to California voters on the 2020 ballot.

Comment below and let us know your thoughts on this proposed CA Bill.

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