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Why You Don't Want To Be In California's One Percent
Forbes ^ | 06/30/2015 | Rex Sinquefield

Posted on 06/30/2015 4:27:47 AM PDT by SeekAndFind

Tax reform isn’t exactly something we associate with California. With the highest income-tax rate in the nation (and the third-worst overall state business tax climate, per the Tax Foundation’s most recent rankings), the Golden State offers plenty of practical lessons in how not to run an economy. However, California State Controller Betty Yee recently suggested tax reform that shows a clear understanding of the peril facing California’s economy – and offers ideas that could restore energy and momentum to a sluggish state business climate.

Yee, a Democrat, wants to broaden the state tax base. California bureaucrats have grown far too accustomed to relying on the top 1 percent, treating them as “cash cows” for the treasury. Yee views this approach as both shortsighted and unsustainable, particularly given the wild fluctuations in the incomes of the rich (which dip or soar based on capital losses or capital gains, and which are the most mobile of American incomes).

The latest figures (from 2013) show that the top 1 percent of earners in California accounted for 21.8 percent of the state’s adjusted gross income (AGI), yet provided 45.4 percent of the state’s personal income tax intake. The top 10 percent of California earners brought in 49 percent of the income – and paid 78 percent of the income tax bills. (It should be noted that to be in the top 10 percent in California, one need not be super-wealthy; workers who earn above $141,600 are in this upper echelon and pay the high taxes it requires.)

When a state economy depends so greatly upon the incomes of a relatively small sector of the population, it is going to yo-yo as the nation goes from bust to boom and all points in between. That means leadership can’t create consistent funding plans

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: california; onepercent; rich; taxes

1 posted on 06/30/2015 4:27:47 AM PDT by SeekAndFind
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To: SeekAndFind

The Fascists don’t need more revenue.

They need to narrow their spending to the “necessary” business of the state, and quit the vote buying and social engineering.


2 posted on 06/30/2015 4:56:07 AM PDT by G Larry (Obama Hates America, Israel, Capitalism, Freedom, and Christianity.)
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To: SeekAndFind

If it were not such a beautiful state the 1% would of already left.


3 posted on 06/30/2015 4:56:52 AM PDT by 2001convSVT (Going Galt as fast as I can.)
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To: SeekAndFind

I would love to be a CA 1 percenter.

of course it would only take me a couple of weeks to relocate to a free state.


4 posted on 06/30/2015 5:35:24 AM PDT by utax
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To: 2001convSVT

RE: If it were not such a beautiful state the 1% would of already left.

The thing that California has an advantage of compared to most other states is this — EXCELLENT WEATHER.

It is mostly temperate — not too hot and not too cold.

You don’t find that in Florida or Texas and that alone is probably worth a lot of money to people.

The only other state that competes with California in terms of weather is Hawaii.

Which just goes to show that it is possible to make a beautiful place terrible to live in with idiotic policies.


5 posted on 06/30/2015 6:09:31 AM PDT by SeekAndFind
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To: G Larry

They’ve just decreed free health care for illegal aliens...no wonder a quarter of the state’s population is living beneath the poverty line. For illegals all the freebies might equate to a middle class income in their homeland.


6 posted on 06/30/2015 6:36:01 AM PDT by Hotlanta Mike (‘You can avoid reality, but you can’t avoid the consequences of avoiding reality.’)
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To: SeekAndFind

Katy Bar the Door if they ever tax service income. The political class will all drive gold plated Maybachs ~


7 posted on 06/30/2015 8:48:01 AM PDT by tubebender (Evening news is where they begin with "Good Evening," and then proceed to tell you why it isn't.)
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To: SeekAndFind
Which just goes to show that it is possible to make a beautiful place terrible to live in with idiotic policies.

Why do we keep letting liberals get the good real estate?

8 posted on 06/30/2015 11:37:22 AM PDT by Carry_Okie (The environment is too complex and too important to manage by government regulation.)
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