Posted on 08/15/2020 4:44:19 AM PDT by karpov
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Democrats in Sacramento are proposing to raise the state’s already punitive 13.3% top income tax rate to 16.8%—retroactive to January of this year. Now’s a good time for California high-earners to take their money and run.
The Assembly bill would raise the top rate to 14.3% for households making more than $1 million, 16.3% on income above $2 million and 16.8% above $5 million. The combined federal-California top marginal tax rate would rise to 53.8% on wage income and 40.6% on capital gains. Another Assembly bill would apply a 0.4% wealth tax on assets over $30 million.
It’s hard to tell how serious these proposals are, though Democrats hold a supermajority in Sacramento and will be searching far and wide for more revenue if Democrats don’t win control of Congress and the White House in November. They’re counting on an election sweep in November so Congress will ease the state’s tax penalty by repealing the $10,000 federal cap on the state-and-local tax deduction.
Yet Joe Biden is promising to raise the federal top rate to 39.6% from 37% and tax capital gains at the same rate as wage income. This would mean the effective rate on capital gains in California would increase to 49.7% plus the federal 3.8% surtax on investment income.
Inflation combined with confiscatory taxation would erase many gains over time, especially when paired with the wealth tax, which would apply to all assets held globally. So well-to-do Californians couldn’t even shelter their money in the Cayman Islands or Switzerland.
Democrats say the income-tax hike would only hit the top 0.5% of taxpayers and the wealth tax would nab the top 0.1%. But the top 0.5% currently pay 40% of the state’s income-tax revenue—$32 billion in 2018—and are mobile.
(Excerpt) Read more at wsj.com ...
I have two words for Sacramento: Laffer Curve.
Wealthy New Yorkers who have been fleeing the misery of NYC for the sunny skies of California over the last few months might be likened to those fleeing Hiroshima for Nagasaki. Same tax mushroom cloud, different city.
Note to Meghan Markle and Prince Harry: Embrace the suck.
Only government comes up with this plan. No notice and no chance to set aside the money for the taxpayer. Just magically come up with the money!
Other than estate taxes, income tax is the most egregious abuse of power ever devised by the representatives of a republic.
Newsom is in trouble. He is running a $20 billion deficit.
“I have two words for Sacramento: Laffer Curve.”
I have two words as well. One is a verb the other a pronoun!
Round it up to 25%. The surplus can be used for a monorail.
Plus more security details for Democratic governor, mayors, councilmen, etc.
Sure...We’re ALL soCIAlist$ now. Welcome to the Hotel Colliefornia. We are PROGRAMMED to receive and deceive. We’ll TAX YOU any time WE like...YOU can never leave our nursing homes.
Navin Gruesom is the band manager.
$ocialism I$ Legal Plunder - “The Law”; Frederic Bastiat
Newsom is in trouble. He is running a $20 billion deficit.
—
I guess shutting down your state for five months has some consequences.
Since there has never been a case where a government was able to tax themselves into prosperity I predict any tax increase will mean less money into the treasury.
I also predict the wealth producers in California will relocate to a place where the taxes are more reasonable.
Newsome, quit taking advice from New York
16.8 % is a small price to pay to live in a state chock full of queers, illegals, misfits, and demonrats.
“...which would apply to all assets held globally. So well-to-do Californians couldn’t even shelter their money in the Cayman Islands or Switzerland.”
You can run but you can’t hide.
According to Fox News this morning they are proposing a tax that would apply for ten years after you LEAVE the state! So moving won’t save you.
You can check out but you can never leave?
Round it up to 25%. The surplus can be used for a monorail.
Sure, then they can seize property and divert more funds, just to abandon it in pieces, just like the high-speed rail! Now that’s the ticket!
Semi-mono rail
Hike the taxes to 30% then.
If it gets really tight, tax people more than they make, say 120%. Money out of thin air!
Do you really think that will matter to the morons who will still be voting Democrat as Big Brother's minions drag them off to the gulag?
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