Proposed increase in California taxes

[Sassy]

August 27, 2008
California Ballot Initiative to Impose 45% Income Tax, 55% Wealth Tax & 36%-54% Exit Tax

A California activist is trying to gather the 694,354 signatures needed to place a tax initiative on the ballot that would:

    * Impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate) -- 17.5% (on all of the taxpayer's income) when income exceeds $150,000 (single)/$250,000 (joint), and an additional 17.5% (again, on all of the taxpayer's income) when income exceeds $350,000 (single)/$500,000 (joint).
    * Impose a one-time 55% wealth tax on assets exceeding $20 million held by a California resident or held in California by nonresident.
    * Impose an exit tax of between 36.5% to 54.3% on both income and unrealized appreciation in asset values over $5 million when a resident dies or leaves California.

See Roth & Co., Tax Foundation, and Taxable Talk.

http://taxprof.typepad.com/taxprof_blog/2008/08/california-acti.html

You know that those in the highest levels will still find loopholes to not pay taxes while the middleclass - which used to be upper middleclass, will bear the weight of the tax burden if these are passed.

[MountainDon]

It's simply a left wing, socialist, income redistribution plot.

[ScottA]

Sounds too extream to be realistic. Maybe they want everyone to move out of California so the redwoods can grow back or somethng.

[John_C]

It's simply a left wing, socialist, income redistribution plot.

C'mon Don, don't sugar coat it.  Tell us what you really think

Not too long ago they announced their intent to raise corporate taxes by a significant amount.  Within hours Toyota withdrew plans to build a new assembly plant on the outskirts of San Francisco, and announced that the new Prius facility would instead be built in Mississippi. 

AAA announced they would close all offices in CA as the business environment made it impossible to operate profitably there.

The CA legislature certainly learned from that one. 

What's the expression I'm looking for... yeah   FUBAR

[StinkerBell]

I recall the "Screw 8 Yes on  Prop 13" slogan of the late 70's......

[muldoon]

This is so bad it has zero chance of seeing the light of day.  However, the goal is likely to simply gauge the waters.  If enough people think a free lunch sounds good, it may resurface in time with lightened terms. 

Much like I was really happy to see gas at 3.17 this morning, then I realized that it was almost a dollar less a only year ago.   If 50% one time tax, and 45% income annually sound bad - maybe 30%  yearly would be a good compromise. 

Needs a t-shirt-
California -
Since it worked so well for Michigan, were going to join them in the effort to tax ourselves into prosperity !!!

[Redoverfarm]

Sorry I just don't get it. What is the deal with CA.  Everything is higher and more restraints on the population than the norm. Just seems alot different than other parts of the US. I guess it is all population driven.  Don't have that problem here.  The income tax would hurt me but as far as the taxes on the wealthy that wouldn't bother me a bit.  What is the tax rate on Welfare participants anyway?

[Sassy]

They don't pay any! 

When I went back to get my nursing degree, I was a single mom of 2 young boys, one with special needs.  I worked parttime but did get the max school grants & student loans I qualified for each year.  I also got welfare for my 2 kids...  they wouldn't give me food stamps but for 3 years I did get about $300 a month to help out with expenses.  After I graduated I was right back full time in the work force paying my share of taxes - I've worked since I was 11 y/o at one or more types of jobs (started out with babysitting & playing organ for the church).  I didn't feel so bad, it was badly needed help to get me through college, be able to take care of my kids & still spend a bit of time with them.  I knew I wasn't going to be on it for the rest of my life. 

Yeah, it's crazy in California...

[desdawg]

An Exit tax. Asta La Vista Baby but don't take your earnings with you. The problem is CA hatches these things then the other states adopt them in some form later.

[glenn kangiser]

This sounds good - can they do it here? hmm

If so - advance notice, please.

http://english.pravda.ru/news/russia/28-07-2008/105904-california-0

[desdawg]

Oh that is California the village. "The village of California was a deserted settlement, which had absolutely no perspectives for development since there was not even a power line in California." Could it be a sign or an omen of things to come.

[apaknad]

muldoon,

  let's see..., where do i start about michigan? since i am a retiree living in mi. i can tell you as of yesterday gas was $3.74, taxes are through the roof, unemployment runs from 10+% where i live to 13% in nearby counties. Flint, mi. is a dangerous ghost town, tourism is down, i can't find a job, Detroit mayor is on trial, my foot hurts and as of this morning when i look in the mirror i see a stranger(what happen to that handsome young lad?). i guess you don't need to know about the last two points. did you say gasoline was $3.17? BTW, congrats on your anniversary.

[Sassy]

...and I was thinking I was getting a bargain at $3.89 for regular 

[Sassy]

We need to move to New Hampshire...  they not only have the lowest tax rate but the lowest poverty rate...
hmmm, makes sense that if you can keep more of your money from big gov't you will have more to spend...

http://wbztv.com/local/newhampshire/new.hampshire.poverty.2.804186.html

someone made the comment that property taxes & housing are so expensive in NH that no one can afford to live there except people with money, that's why they left.

[John_C]

New Hampshire is, in many ways, the polar opposite of CA  example:

a citizen legislature where state house representatives have not raised their $100 per year salary since 1889

You might find this link interesting   http://freestateproject.org/

[Sassy]

I've read a lot of good stuff about NH.  The site looks interesting.  Isn't their state motto "live free or die"?
If it wasn't so cold during winters...  if we didn't have so much invested here is California & family here, I'd love to move someplace else...  I'd have to really check out the area, taxes, etc etc.

[Redoverfarm]

But Sassy it's no colder underground there than where you are.

[desdawg]

Wow, gas prices sure differ across the country. I paid $3.55 today here. I saw some prices in Phoenix in the $3.40's when I checked the internet this morning. But none of those stations were on my route through the big shi shi city.

[ScottA]

Gas had dropped to $3.29 here as of yesterday but today it was back up to $3.49

[Sassy]

But Sassy it's no colder underground there than where you are.

Glenn might find the ground a bit harder  but then again maybe there wouldn't be so many rocks! 

[John_C]

but then again maybe there wouldn't be so many rocks!

Ummmmm........  it's called the Granite State.