Skip to comments.Wealthy exodus to escape new tax rules worries California Democrats
Posted on 01/18/2018 6:35:38 PM PST by Beave Meister
The Republican-backed federal tax bill flipped the tables on a never-ending question for California politicians: Will high taxes lead the states wealthiest residents to flee the Golden State for the comparable tax havens of Florida, Nevada and Texas?
Republicans reliably raise that alarm when Democrats advocate for tax increases, like the 2012 and 2016 ballot initiatives that levied a new income tax on very high-earning residents.
But now, with the federal tax bill cutting off deductions that benefited well-off Californians, the states Democrats suddenly are singing the GOP song about a potential millionaire exodus.
People with higher incomes pay a lot more money, and some of them may be tempted to leave, Gov. Jerry Brown said when he unveiled his 2018-19 budget proposal last week. This was an assault by the Republicans in Congress against California.
That fear animates Senate President pro tem Kevin de Leóns bill that would allow California residents to write off their state taxes on their federal returns as a charitable deduction, as well as other proposals that Assembly leaders have hinted theyre preparing to offer. De Leons bill cleared a second committee this week and is on its way to a vote on the Senate floor. Trump administration officials say it wont pass muster with the IRS.
Democratic state lawmakers are worried because California relies so heavily on the income taxes it collects from high earners to fund government services. The states wealthiest 1 percent, for instance, pay 48 percent of its income tax, and the departure of just a few families could lead to a noticeable hit to state general fund revenue.
(Excerpt) Read more at sacbee.com ...
I thought all of those rich democRATS wanted higher taxes.
So what’s the big deal?
No problem, just print more money. Oh wait; states can’t do that.
They like to slow boil the frog so it doesnt hop out of the pot.
rich californians going their own way.
“The states wealthiest 1 percent, for instance, pay 48 percent of [California’s] income tax...”
Oh, those evil, EVIL Rich People! We should drive them all over a cliff!
Gas is more expensive than other states.
Sales tax higher than other states
Income tax higher than other states.
Minimum wage is higher than other states.
Sanctuary cities reward murder with a free pass.
Jerry Brown is the states official nut.
Gee what can go wrong.
Reno, Carson City or Vegas?
Gosh, it's almost as libtards are pathologically self-centered ***holes. Thanks Beave Meister.
Fear not, Barbra Streisand can pick up the tab.
If the charitable contribution is mandatory, it is not a charitable contribution. If it is not mandatory, very few people (even in CA) will do it.
I have never seen such insulting comments in any SacBee article. They make Freepers look like GOPe.
California should just pass a law that prohibits people from moving out of the state.
Or make them sign a contract that they will continue to pay California taxes.
States give incentives for companies to move, how about individuals?
The states wealthiest 1 percent, for instance, pay 48 percent of its income tax, and the departure of just a few families could lead to a noticeable hit to state general fund revenue.
You can rob Peter to pay Paul, but what happens when Peter packs up and leaves.
Just so they dont move to red states.
My kids are begging me to chose another state! My oldest just bought a new house, but my youngest refuses to...he want’s out right now and both can go elsewhere and make a good living.
I don’t know what I’m going to do!
One of the comments in the SacBee article suggested going after rich folks that try to leave Kalifornia. Governor Grey Davis tried to do just that and a Judge through it out of court, stating, in essence ‘I don’t think so!’
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