Congressman Schweikert Introduces Legislation to Prevent Unconstitutional 'Exit Taxes'
Press Release
Today, Congressman David Schweikert (AZ-06) introduced the Exit Tax Prevention Act of 2021, legislation that would prevent states from taxing Americans who relocate to a new permanent residence. This legislation comes in response to a proposal in the California State Legislature to use a wealth tax to continue to tax residents who leave California and move to another state.
"No American should be subjected to a tax penalty for their decision to move, whether that be a financial, family, lifestyle, or other choice," said Rep. Schweikert. "The California State Legislature's proposal sets a dangerous, unconstitutional precedent when it comes to taxing hard-working Americans trying to relocate to a state better suited for their goals and needs. I am proud to introduce the Exit Tax Prevention Act of 2021, which would ensure taxpayers are protected from this unconstitutional tax while allowing the freedom of human ingenuity and choice to continue to thrive across the United States."
Background:
In 2020, Democratic members of the California State Legislature introduced a bill to place a wealth tax on certain California residents, including an "exit tax" on residents who move out of the state. Under the proposal, residents subject to the wealth tax who move out of California would be required to continue paying the exit tax for ten years at a sliding scale.
The Exit Tax Prevention Act of 2021 would prevent states or taxing jurisdictions in the United States from imposing any form of tax on a resident who relocates their permanent residence to another state or taxing jurisdiction. This includes all 50 states, the District of Columbia, U.S. territories, municipalities, cities, counties, townships, parishes, transportation districts, or any other political subdivision of government with the authority to impose taxes on its residents in the United States.
This legislation is cosponsored by Representatives Scott Franklin (FL-15), Jody Hice (GA-10), Tracey Mann (KS-01), and Scott Perry (PA-10).
This legislation is supported by Taxpayers Protection Alliance, National Taxpayers Union, Americans for Tax Reform, and FreedomWorks.
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