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California on the Brink: 144,000 Pay 50% of Income Taxes

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Imagine the situation in which California finds itself.  Out of all the income taxes collected by that state, 50% of it is paid by by only 144,000 people.  Far less than one percent of the population.  Doug Ross has more on the issue…

California residents already contend with one of the most progressive tax codes in the country. Not only does California have high marginal rates, those high rates kick in at relatively modest income levels. California’s middle class residents earning $48,000 a year, for example, pay a state tax rate of 9.3%. Millionaires in 47 other states don’t even pay that high of a marginal rate. However, one of the state tax code’s greatest flaws is it’s over-reliance on upper income households and the revenue volatility it creates, and that is a problem that Prop. 30 would further exacerbate.

As of 2010, the state relied upon 144,000 households, 1 percent of taxpayers, for 50 percent of total state income tax… [With Proposition 30’s passage,] the top 10 percent of earners would be responsible for over 80% of the projected income generated – a fact that Gov. Brown and other advocates of the bill readily acknowledge.

Um. we’ve documented that businesses, both large and small, are exiting California at an accelerating  rate.  What exactly is California going to do when a large percentage of these people leave?  Where will the money come from then? Or, as Thatcher would suggest, what are they going to do when they run out of other people’s money?

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  • http://conservativesonfire.wordpress.com Jim at Conservatives on Fire

    That’s an eye poping story. It wouldn’t take many of those people voting with their feet, to put a real hurt on California, would it?

  • http://strandedinsonoma.blogspot.com/ Stranded in Sonoma

    I live in CA and I voted NO on both Props 30 and 38. I asked if Prop 30 passes (38 was less likely and it failed), how can the budget analysts claim it would increase revenue when businesses and high net worth individuals are leaving the state and that exodus will increase with the higher taxes? When they go, so do their employees. Or they stay and go on unemployment. Businesses are laying off CA-based employees because of high costs. One of those costs is that if you are in a specific job classification, you cannot be exempt from overtime. My company made me exempt but had to change back to non-exempt. Four months later I was laid off. The socialists in CA claim they are “protecting” me from my employer. Who protects me from the gov’t? Why don’t I have a…wait for it…CHOICE to decide whether or not I want to be exempt from overtime?

    There are many jobs that need overtime protection. Plumbers wading through human feces every day. Construction workers out in the cold and wind and rain. Yes, they deserve overtime. But me in my comfortable home-office? Giving me overtime is an insult to them.

    Thanks CA! Now when the socialism fails, who will they blame? Bush? He’s long gone. Obama? Never! They’ll blame the “rich” and the middle class for “not paying their fair share in taxes” and the “gimme my free stuff” crowd will be the squeaky wheel while the “rich” and middle class are ignored.