and i thought NY was bad...
Posted on 09/01/2013 8:19:17 PM PDT by grundle
California imposed a huge retroactive income tax increase last year, but some 2,500 small business owners are learning that once is never enough for Sacramento. The state now wants to hit them with a retroactive levy going back to 2008, to the tune of $120 million or more.
California has since 1993 let investors cut their capital-gains tax in half if they invest in qualified state businesses. But late last year the state Court of Appeal ruled that the tax break violates the U.S. Constitution's Commerce Clause by discriminating against out-of-state firms.
Instead of simply ending the tax incentive going forward, the state Franchise Tax Board has ordered investors who used the tax break to pay five years of back taxes. As a special insult, these taxpayers may have to pay interest and penalties on the "unpaid taxes" they were never required to pay in the first place. So the politicians promise tax favors for investment, but when the courts invalidate the favors the politicians punish the folks who did what the politicians asked them to do.
Normally in such cases, the taxing authority holds taxpayers harmless through what is called "transition relief." But Sacramento has an insatiable appetite for revenue, even after voters approved Governor Jerry Brown's income tax rate hike to 13.3%. That November initiative wasn't even placed on the ballot until July 2012, but it applied to income starting January 1, 2012. The Franchise Tax Board is merely doing what the politicians want.
(Excerpt) Read more at online.wsj.com ...
and i thought NY was bad...
That ought to attract all kinds of business.
anyone who stays in CA after all the stupid gun laws, etc, and the invasion from Mexico, is foolish in the Extreme. Vote with your feet and your wallet, get the hell out.
WTH?????
“Vote with your feet and your wallet, get the hell out.”
And just where would you suggest that all 16 million of us go!
Go back to your doublewide and fry something!
Those tax increases solidified Dems hold on state, No more budget fiascoes. They simply raise taxes without worry of backlash when they need $$$.
Maryland did the same thing.,
Dems will say this is what its like to ‘make things work’
Welcome to the Hotel California. I noticed something interesting about the high speed rail project in California. It never leaves the state. You can get to any station you like, but you can never leave.
The smart ones (like you) will likely end up in a Red State. The dumb ones (the ones that out number you) will likely stay where they are.
The smart ones (like you) will likely end up in a Red State. “
Sorry to disappoint you, but just like FR, I’m not planning to go to a “Red State,” because to do so, would negatively impact my lifestyle. I want to live to see CA once again be the state where Ronald Reagan was governor. Lots of decent places to live in the US, but California, even with it’s screwed up government is still a cut above all the rest. I will be thinking of you this weekend when I go down and stay at our place in Carmel and go out to Laguna Seca for the Grand Am races. It will be in the mid-70’s with no humidity!
California: King George Has NOTHING on Us!
I fear you will not live to see CA red once again.
It’s not gonna happen in your life time.
Mid 70’s here to. Nice fishing weather. It’ll be a little to cool for skiing or tubing.
I like seasons even if it’s winter and road construction around here.
Kalipornia looks to Detroit as a model
To Kalipornians: Not Texas, its a terrible place, please do not come to Texas.
Right about that! They are East Coast bedbug/fireant vermin.
I lived there when Ronnie was Gov. as well...was the best!.
Even my native pals have given up now.
And to the Kalipornians: Do not come to Arizona. We’re sick of hearing you b*tching about how hot it is. It’s freaking hot here. Get over it or go back to LA.
Ex post facto laws violate the Constitution, too.
Yes and Arizona is a terrible place. You most certainly want to avoid Arizona
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