Skip to comments.Will New California Income Tax Hike Drive Rich Away?
Posted on 03/30/2012 4:25:12 PM PDT by Kaslin
California's Gov. Jerry Brown has just signed on to a labor-backed ballot initiative to raise tax income tax rates to as high as 13.3%, and so far the voters seem to approve. A new Los Angeles Times poll puts public support for the plan at 64%. If the measure wins in November, California will hold the prize for the highest income tax rates in the nation.
That is, if some other state doesn't jump past it before then.
In recent years, the country has seen something of a tax-the-rich derby among states enacting so-called "millionaires' taxes" on top earners. Hawaii, New Jersey, New York, Oregon and Maryland all raised rates on high earners during in the 2000s. California's rates were high already.
In some cases the taxes were temporary, in others, not. And you didn't always have to be earning a million dollars to feel the bite. As of January 2012, according to data from the Tax Foundation, Hawaii was the top taxer with a rate of 11% on incomes over $200,000 (for single filers). California was close behind with 10.3% on incomes over $1 million. New Jersey has let a 10.75% tax lapse, but its top rate was still a relatively high 8.97%. Oregon's temporary 11% tax was history, but the top rate was still 9.9%. In New York, Gov. Andrew Cuomo resisted pressure to keep a top rate of 8.97% in effect, but the state ended up with a tax only slightly lower 8.82% on incomes over $1 million.
(Excerpt) Read more at news.investors.com ...
Liberal Californians are hellbent, aren’t they?
Pretty soon, they will be the only ones there to pay these taxes.
Utah has all the Hollywood stars now, they left years ago
High taxes are already driving the productive out of California! Higher taxes will certainly continue the trend.
The ironic thing is that many transplanted Californians vote for the same policies that made them leave in the first place.
I wish all the rich Liberal millionare/billionare stay there, but knowing them, they’ll flee to another state and continue to vote for DEM
Rich Liberals believe in higher taxes for others but not themselves
I wish they would stop coming over to AZ!!!! We like their business but they want to drag their progressive and perverse culture with them.
California is evidence that Liberals aren’t just stoopid...they are bat guano crayyyzzzzy!
I would not mind so much if these liberal expatriates from California and other wealth-phobic states would confine their efforts to merely voting, as their vote counts for no more than mine. What I object is that they keep funding others to propagate the nonsense of liberal ideas, and generate so much cheesy propaganda for their left-of-center views that honest discourse is overwhelmed.
“The ironic thing is that many transplanted Californians vote for the same policies that made them leave in the first place.”
Just like all the transplanted easterners ruined California.
The Republican solution for solving Cali’s $9+ Billion deficit doesn’t call for tax increases, it calls for spending cuts.
Unfortunately, registered republican voters now account for about one in three of the total registered voters in the state.
And we’re up against the union lobbies.
But we do have a real solution that Moonbeam pretends not to notice.
Just thought I’d point that out.
What are you talking about? People love high taxes.
Why do you think we keep voting for people who raise them?
Maybe you are, but I am not
Nope - a ton of them are leaving, going to other states.
They've already ruined much of the conservatism of Arizona. Cal-Dimwits fled the mess they created in that state, and have been ripping AZ apart as they have matched and outnumbered conservatives in what once were near 100% conservative areas.
Let us do a simple thought experiment. I am an entrepreneur who has a somewhat successful business. I am in a state where unemployment is high and the government is in deep deficits. The state government institutes a income tax increase that starts at $150k but I am a sole proprietor and my taxable income is at $130k.
I wake up one night with a brilliant insight and marketing campaign that will increase my business by 25% and force me to hire 10 new employees. Getting ready to implement this great idea, my CPA informs me that I will actually lose money when all of the overhead, business tax and personal tax increase is realized.
Do I implement my idea in that state or move my business to a better business climate in a different state?
I'm moving to Prescott Valley, which used to be very conservative - but now is far less than.
LOL - ya got that exactly right!
hope it works - but don’t bet that it will pass - you’ll likely lose the bet! ~grim grin~
I suspect they are also convincing their studios to make their movies outside the state. Californians might possibly (not likely though) realize they are finally running out of other people's money. Only the welfare cases will remain.