High-income Californians may pay nation's highest tax rate


#1

Thanks to passage of Proposition 30 last month, high-income Californians would pay the nation’s highest marginal income tax rates – nearly 52 percent – if President Barack Obama and Congress fail to make a deal to avoid the so-called “fiscal cliff,” according to a new study.

Without a fiscal cliff deal to the contrary, the Bush era tax cuts on high-income taxpayers would expire next year and rates would return to their previous levels.

Gerald Prante, an economics professor at Lynchburg College in Virginia, and Austin John, a Lynchburg economics student, calculated marginal tax rates – the highest rates on the highest levels of income – for all 50 states. They combined state, federal and, where applicable, local income taxes, plus payroll taxes for Social Security and Medicare and included the deductibility of some taxes.

http://blogs.sacbee.com/capitolalertlatest/2012/12/high-income-californians-may-pay-nations-highest-tax-rate.html

Ah but Obama wants higher taxes and from the looks of it the republicans are willing to give in to him.

Ain’t life great if you are a democrat/sarcasm

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#2

CA already had @#$%-the-rich tax rates that drove many “rich” people to other states. Not all, of course, but I’m sure there is a second wave of “rich” people leaving CA or rearranging their investments to minimize taxes (and, incidentally, economic benefit to the economies of the state and nation).


#3

My wife and I were both physicians in So Cal. We made a good living while practicing and we were taxed accordingly - by the feds and the state. When we retired our income was reduced but we were still exposed to very high state rates and we left California precisely because of the onerous state income tax rates and other cost of living factors attendant to life in the “Golden State”. It was a smart move to leave Cal upon closing our practices. Hell, it is a complete freakin’ no brainer at this point!! The ONLY thing that will keep Cal going - for a while, perhaps - is the fact that the largest employers in the state, small business owners, most often find it impossible to pull up stakes and re-open their business elsewhere - it is too expensive to leave and they are getting clobbered by staying. In short - these poor, hard working souls are getting completely screwed.

If Cal were a country it would have the 8th largest economy in the world. Too big to fail? I have no idea what might happen if - when - Cal becomes comatose. But it sure as hell won’t be good!!


#4

The one good thing about PA is that they don’t tax retirement income.


#5

[quote=“Susanna, post:4, topic:37394”]
The one good thing about PA is that they don’t tax retirement income.
[/quote]There is talk about doing so here in Illinois.