Richard Rider

Richard Rider
San Diego, California, USA
August 24
San Diego Tax Fighters
Biography of Richard Rider (Updated July, 2011) San Diego, CA 92131 E-mail: * AGE: 66 * EDUCATION: B.A. Economics, University of North Carolina, 1968 * MILITARY SERVICE: Commander, Supply Corps, U. S. Naval Reserve, retired after 26 years (four years active, the rest in the reserve). ** OCCUPATION: Retired stockbroker and financial planner. Lifetime member of the International Association of Financial Planners. Former business owner. * AFFILIATION: • Chairman, San Diego Tax Fighters • National Taxpayers Union • Howard Jarvis Taxpayers Association • San Diego County Taxpayers Association * POLITICAL ACTIVITIES: • Successfully sued the county of San Diego (Rider vs. County of San Diego) to force a rollback of an illegal 1/2-cent jails sales tax, a precedent that saved California taxpayers over fourteen billion dollars, including $3.5 billion for San Diego taxpayers. • Actively supported a variety of tax-cutting ballot initiatives including Proposition 13. Has written ballot arguments against numerous county and state tax increase initiatives. • County co-chair of both California term limit initiatives (Prop 140 and Prop 164). • Libertarian Party candidate for governor in 1994. • Candidate for the 3rd District County Supervisor in 1992 (third place among six candidates with about 20% of the vote). • 1993 – appointed to (and then elected chair of) the San Diego County Social Services Advisory Board. • 1996 – appointed as a Commissioner on the California Constitution Revision Commission by state Assembly Speaker Kurt Pringle. • Has been involved in legal actions against City of San Diego to force a public vote on issuing bonds for Qualcomm stadium expansion, convention center, baseball ballpark and other projects. • 2005 – Unsuccessful candidate for Mayor of San Diego, though his reform ideas have since taken hold. • 2007 – Columnist for NORTH COUNTY TIMES and SAN DIEGO DAILY TRANSCRIPT • 2009 - The Howard Jarvis Taxpayers Association's "California Tax Fighter of the Year" * FAMILY: Married. Wife, Diane, is a retired public high school teacher. Two sons, ages 32 and 27.

MARCH 14, 2012 10:01AM

My WSJ letter on the illusionary CA Facebook tax windfall

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Today the WALL ST JOURNAL ran another of my letter to the editor submissions.  The last time I was published, I bragged that I was four-for-four on WSJ submissions making it into print.  Sadly, this latest success follows a rejected submission, so of late I'm now five for six.

Here is my well-edited letter as published.  My submission was too long, of course.


Pushing Those Golden Geese Away

 The California Facebook capital gains tax windfall is largely illusionary ("Facebook to the Non-Rescue," Review & Outlook, March 8). If the recipients get any tax advice at all, they will consider relocating outside the state to make the sale. Indeed, they only have to live outside California for over half a calendar year to establish residency somewhere else.

If a shareholder takes such a one-time $10 million capital gain in California, he will pay about $1 million extra in state income tax. If Gov. Jerry Brown's retroactive tax increase passes in November, he would pay about $1.2 million. If the union-backed tax increase passes, he would pay about $1.5 million in tax. If such a recipient moves to income tax-free Nevada for only six months, he'll save anywhere from $165,000 to $200,000 for each month residing there just on capital gains, not counting the California income tax he'd save.

Other tax avoidance possibilities include charitable remainder trusts and donations. California's best hope is that these lucky shareholders avoid the capital gain and later return to high-tax California to live. But many likely will find that income tax-free states are pleasant places to live after all—especially when one is rich.

Richard Rider

San Diego

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california, taxes, regulation

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