by Bob Walsh
The formerly great state of California has a fucked-up tax set-up. The state income is heavily dependent on the income tax, which is heavily skewed onto high wage earners. More and more of them are saying SCREW YOU and leaving. Even a lot of mid-level state pension retirees have left the state. It got so bad that CA sued some years ago to try to collect state income tax on CA state pensions paid to people now living out of state. The state lost, as well it should have.
The Democrap controlled state government is now sweating big time over the new tax rules which will make it impossible to detect state taxes from your federal income above a very modest level, $10,000 I think. They believe, or at least fear, that a significant number of high earners will vote with their feet and find that Arizona or Texas or Nevada are starting to look very, very inviting.
It is so bad that the Democrats are trying to figure out a way to have state income taxes made into a Charitable Deduction for legal purposes. Really. Kevin Deleon's proposal has already passed two committees. The IRS has cried BULLSHIT already.
The top 1% of earners in the state pay 48% of the state income tax. That is the trouble with being Robin Hood. At some point the rich stop riding thru Sherwood Forest and move to Houston. Then Robin and his band of Merry Men are shit outta luck.
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