California Democrats want to tax millionaires: top state tax rate would be 16.8%

[Nordberg]

The thread suggests that they are thinking of forcing the wealthy to pay some taxes. That will really piss them off. They are not used to that.

[TexanManWithPlans]

It’s possible the national Democrats are playing chess. They already have California on lock down and the millions of votes they win the state by means nothing from an EC perspective. So they’ve figured out a way to farm their voters to other more competitive states. Gotta give them credit for playing the system.

If by "playing" the system, you mean make things more fair, then yes, they "play" the system.

[countryboy]

I thought this interesting for a couple of reasons. From a California perspective raising taxes in a recession is 'interesting' but more than that the state is so highly dependent on high earners that if some actually decide to leave it would have a material effect on the state budget.

But for those who say F California and I don't care what they do here's how this affects national politics. Within the U.S. more people have been leaving California than entering for years. And states like Nevada and Colorado have been on the receiving end and we've seen turn blue. Now states like Texas, with its huge number of Californians, are moving towards purple. Even states like Georgia are receiving a decent number of Californians and we see what's happening there.




California Democrats want to tax millionaires: top state tax rate would be 16.8%

A bill introduced in the Legislature this week would raise California’s top personal income tax rate — already the highest in the nation at 13.3% — to 16.8%, retroactively to Jan. 1.

To take effect this year, the bill would need to be approved by two-thirds of the Legislature before they adjourn Aug. 31. The Senate Governance and Finance committee will hear testimony on the bill Monday morning, but won’t vote on it. It would need additional action to move forward.

AB1253 would add a surcharge of 1% to incomes (joint or single) between roughly $1 million and $2 million, 3% on income between $2 million and $5 million, and 3.5% on income greater than $5 million, bringing the top rate to 16.8%. (The tax would actually take effect at somewhat higher incomes because of inflation adjustments.)

If the bill is approved, the revenue would go into the general fund and not be earmarked for anything specific. However, “there is a wide spectrum of incredibly pressing needs for the state at this time, (such as) affordable housing, the homeless, child care and education,” said Assemblyman David Chiu, D-San Francisco. Chiu is one of the bill’s co-authors.

The bill is backed by a coalition of labor unions representing public-sector employees, “progressive nonprofits and equity organizations,” Chiu said.


Critics say the state is already overly reliant on a small number of wealthy residents and should not increase its dependence on them. Nor should it encourage them to take their incomes and businesses out of state, especially at a time when work-from-anywhere appears more feasible.

In 2017, only 0.5% of people who filed a state tax return had $1 million or more in adjusted gross income, but they accounted for 40% of all taxes paid, according to the latest Franchise Tax Board data. The top 3.6% of filers, those making $300,000 or more, accounted for 62.3% of all state taxes paid.

“California’s status as a high-tax state already has resulted in business flight and many lost jobs, and this bill would only make things worse,” Robert Gutierrez, president of the California Taxpayers Association, said in a newsletter.

The bill would bring the combined state and federal tax rate for California’s top earners to 53.8%. “With the federal deduction for state and local taxes capped at $10,000, they would not be able to deduct the new taxes from their federal returns,” he added.

A retroactive tax is “especially egregious,” the association’s spokesman David Kline said. “Everyone who has already lived in California for more than half the year would be legally liable” for the tax.

“California is the fifth-largest economy in the world,” Chiu said. “People who want to live and do business here will continue to live and do business here.” A poll, conducted for the coalition in June 2020 by David Binders and Associates, showed that 70% of California voters supported a tax on millionaires.

“We have taxed wealthy individuals before, and we have not seen a mass exodus of wealthy people,” Chiu said.

In 2004, California voters approved a 1% surcharge on income over $1 million a year for mental health services. In 2012, they approved Proposition 30, which raised state income taxes over three years on single filers making more than $250,000 and married couples with more than $500,000 in taxable income. That brought the top rate to 13.3% (including the mental health surcharge.) The state with the next-highest top rate is Hawaii at 11%.

The Prop. 30 tax increase was supposed to expire after seven years, but it was extended through the end of 2030 with the passage of Proposition 55 in 2016.

An AB1253 fact sheet said the bill would affect California’s top 0.5% of tax filers and generate “an estimated $6 billion to $8 billion of revenue each year to help address the recession brought on by COVID-19.” Its principal author, Assemblyman Miguel Santiago, D-Los Angeles, declined to comment. The bill has 14 Democratic co-authors, including Chiu and state Sen. Scott Wiener of San Francisco.

The Bay Area Council, a public advocacy organization, opposes AB1253, CEO Jim Wunderman said: “The state has shown it can bring in enough revenue under the current formula to create a large surplus. At some point, the economy will come back to what it was, and we will have a tax that is even more out of whack than what it is now.”

He said his organization has supported transportation and other taxes, and narrowly supported Prop. 30 because the “state was broken.”

“The tax was supposed to be temporary, and part of a solution (that included) changes to government and (spending) cuts.”

Wunderman would rather see the state borrow money to solve its COVID-related spending needs by selling bonds at today’s record-low interest rates.

“This is a really bad time” to increase taxes, he said. “We are in a historic economic meltdown, companies are thinking about their strategic opportunities right now, where they are going to work in the future.” As he’s said before, “taxes equal Texas.”


https://www.sfchronicle.com/business...s-15450289.php

What causes libs to flee high tax states, only to continue to vote for higher taxes in their new homes? It pretty much demonstrates the fact that liberalism is truly a mental disorder. I see no other plausible explanation.

[floridafan]

What causes libs to flee high tax states, only to continue to vote for higher taxes in their new homes? It pretty much demonstrates the fact that liberalism is truly a mental disorder. I see no other plausible explanation.

Is there anybody fleeing CA? Their population continues to grow every year.

[countryboy]

Is there anybody fleeing CA? Their population continues to grow every year.

https://www.thecalifornian.com/story...om/2778177001/

[T. A. Gardner]

The thread suggests that they are thinking of forcing the wealthy to pay some taxes. That will really piss them off. They are not used to that.

And, they won't pay this one either if they don't want to. They'll leave the state for somewhere else.

[floridafan]

https://www.thecalifornian.com/story...om/2778177001/

Plenty of people ready, willing and able to replace them.

[T. A. Gardner]

Is there anybody fleeing CA? Their population continues to grow every year.

What's happening is the Middle Class and employable are leaving and they're being replaced with losers like the homeless, illegal criminal aliens, and other non-contributing scum of society.

[floridafan]

What's happening is the Middle Class and employable are leaving and they're being replaced with losers like the homeless, illegal criminal aliens, and other non-contributing scum of society.

you are just making shit up, like you always do. You have no fucking idea of what is happening in that state.

[Minister of Truth]

I see the ignorance is still strong on this board

There are more republicans in ca than dems...............This country caters to racist white republicans.always has.

In 1988?

[Into the Night]

I thought this interesting for a couple of reasons. From a California perspective raising taxes in a recession is 'interesting' but more than that the state is so highly dependent on high earners that if some actually decide to leave it would have a material effect on the state budget.

But for those who say F California and I don't care what they do here's how this affects national politics. Within the U.S. more people have been leaving California than entering for years. And states like Nevada and Colorado have been on the receiving end and we've seen turn blue. Now states like Texas, with its huge number of Californians, are moving towards purple. Even states like Georgia are receiving a decent number of Californians and we see what's happening there.




California Democrats want to tax millionaires: top state tax rate would be 16.8%

A bill introduced in the Legislature this week would raise California’s top personal income tax rate — already the highest in the nation at 13.3% — to 16.8%, retroactively to Jan. 1.

To take effect this year, the bill would need to be approved by two-thirds of the Legislature before they adjourn Aug. 31. The Senate Governance and Finance committee will hear testimony on the bill Monday morning, but won’t vote on it. It would need additional action to move forward.

AB1253 would add a surcharge of 1% to incomes (joint or single) between roughly $1 million and $2 million, 3% on income between $2 million and $5 million, and 3.5% on income greater than $5 million, bringing the top rate to 16.8%. (The tax would actually take effect at somewhat higher incomes because of inflation adjustments.)

If the bill is approved, the revenue would go into the general fund and not be earmarked for anything specific. However, “there is a wide spectrum of incredibly pressing needs for the state at this time, (such as) affordable housing, the homeless, child care and education,” said Assemblyman David Chiu, D-San Francisco. Chiu is one of the bill’s co-authors.

The bill is backed by a coalition of labor unions representing public-sector employees, “progressive nonprofits and equity organizations,” Chiu said.


Critics say the state is already overly reliant on a small number of wealthy residents and should not increase its dependence on them. Nor should it encourage them to take their incomes and businesses out of state, especially at a time when work-from-anywhere appears more feasible.

In 2017, only 0.5% of people who filed a state tax return had $1 million or more in adjusted gross income, but they accounted for 40% of all taxes paid, according to the latest Franchise Tax Board data. The top 3.6% of filers, those making $300,000 or more, accounted for 62.3% of all state taxes paid.

“California’s status as a high-tax state already has resulted in business flight and many lost jobs, and this bill would only make things worse,” Robert Gutierrez, president of the California Taxpayers Association, said in a newsletter.

The bill would bring the combined state and federal tax rate for California’s top earners to 53.8%. “With the federal deduction for state and local taxes capped at $10,000, they would not be able to deduct the new taxes from their federal returns,” he added.

A retroactive tax is “especially egregious,” the association’s spokesman David Kline said. “Everyone who has already lived in California for more than half the year would be legally liable” for the tax.

“California is the fifth-largest economy in the world,” Chiu said. “People who want to live and do business here will continue to live and do business here.” A poll, conducted for the coalition in June 2020 by David Binders and Associates, showed that 70% of California voters supported a tax on millionaires.

“We have taxed wealthy individuals before, and we have not seen a mass exodus of wealthy people,” Chiu said.

In 2004, California voters approved a 1% surcharge on income over $1 million a year for mental health services. In 2012, they approved Proposition 30, which raised state income taxes over three years on single filers making more than $250,000 and married couples with more than $500,000 in taxable income. That brought the top rate to 13.3% (including the mental health surcharge.) The state with the next-highest top rate is Hawaii at 11%.

The Prop. 30 tax increase was supposed to expire after seven years, but it was extended through the end of 2030 with the passage of Proposition 55 in 2016.

An AB1253 fact sheet said the bill would affect California’s top 0.5% of tax filers and generate “an estimated $6 billion to $8 billion of revenue each year to help address the recession brought on by COVID-19.” Its principal author, Assemblyman Miguel Santiago, D-Los Angeles, declined to comment. The bill has 14 Democratic co-authors, including Chiu and state Sen. Scott Wiener of San Francisco.

The Bay Area Council, a public advocacy organization, opposes AB1253, CEO Jim Wunderman said: “The state has shown it can bring in enough revenue under the current formula to create a large surplus. At some point, the economy will come back to what it was, and we will have a tax that is even more out of whack than what it is now.”

He said his organization has supported transportation and other taxes, and narrowly supported Prop. 30 because the “state was broken.”

“The tax was supposed to be temporary, and part of a solution (that included) changes to government and (spending) cuts.”

Wunderman would rather see the state borrow money to solve its COVID-related spending needs by selling bonds at today’s record-low interest rates.

“This is a really bad time” to increase taxes, he said. “We are in a historic economic meltdown, companies are thinking about their strategic opportunities right now, where they are going to work in the future.” As he’s said before, “taxes equal Texas.”


https://www.sfchronicle.com/business...s-15450289.php

We need to build a wall around the SOTC and prevent these refugees from leaving the Socialist Oligarchy of the Territory of California and fleeing to the United States until they are properly vetted and properly go through immigration.

[T. A. Gardner]

you are just making shit up, like you always do. You have no fucking idea of what is happening in that state.

Or not...

California ranks first among the states in the percentage of residents over 25 who have never finished the ninth grade— 9.7 percent of California residents, or about 4 million Californians. It also rates 49th in the number of state residents who never graduated from high school — or about 18 percent of the current population.

Second, in the last decade and a half, about 6 million Californians over the age of 25 left the state; in the last 30 years, perhaps 10 million fled.

https://www.nationalreview.com/2019/...-middle-class/

California is losing people at a fast clip. Between 2007 and 2016, the state lost 1 million residents who picked up and moved elsewhere in the U.S., about 2.5 percent of the state population (the state is still gaining population overall, due to births and immigration). The state lost 38,000 last year alone, part of a migration trend that’s speeding up (the state ranked 49th in total amount of domestic outmigration last year). A LinkedIn analysis of the last four years of profile data found that California professionals aged 55-64 are mostly likely to move to Phoenix, Seattle, Las Vegas, New York City, and Portland, Oregon.

https://www.curbed.com/2019/10/22/20...ass-affordable

New data has brought a new urgency to the souring fortunes of California’s middle class.

“Not only are Californians leaving the state in large numbers, but the people heading for the exits are disproportionately middle class working families — the demographic backbone of American society,” the American Interest recently noted.

http://www.capoliticalreview.com/top...-record-rates/

Can California Survive a Middle-Class Exodus?

https://fee.org/articles/can-califor...-class-exodus/

I see it every time I drive I-10 to Tucson. Vehicles with California plates loaded with household goods heading East.

[Into the Night]

Is there anybody fleeing CA? Their population continues to grow every year.

Illegal Mexicans is why. Yes. There are more refugees fleeing the SOTC back into the United States. Many of them have headed to Oregon and Washington.

[floridafan]

Or not...





https://www.nationalreview.com/2019/...-middle-class/



https://www.curbed.com/2019/10/22/20...ass-affordable

New data has brought a new urgency to the souring fortunes of California’s middle class.



http://www.capoliticalreview.com/top...-record-rates/



https://fee.org/articles/can-califor...-class-exodus/

I see it every time I drive I-10 to Tucson. Vehicles with California plates loaded with household goods heading East.

Come on handjob, your links are as full of shit as you are. The population of CA has increased every year for decades. I doubt you have ever been anywhere close to Arizona, and driving at that speed you are able to see what people have in their cars???. I don't know why I even bother with your constant never ending lies and bullshit. So,go fuck yourself.

[Into the Night]

Plenty of people ready, willing and able to replace them.

Even the SOTC is better than life in Mexico. That's why there are so many illegals heading into the SOTC. There are also a fair number of liberals heading to the SOTC as well, believing the Golden Unicorn that lives there will take care of them. I still think we need to build a wall around the Socialist Oligarchy of the Territory of California to prevent refugees from entering the United States until they are properly vetted.