Jerry Browns BIG problem . Tax the Rich and then Tax YOU , because of revenue shortfalls from Companies leaving the State.
Jerry Brown wants to hit California's highest-income taxpayers with billions of dollars in new taxes, and is jousting with other groups with their own tax-the-rich measures over which, if any, will win voter approval. I have nothing against the really rich , I wish that I was well off enough to enjoy a good life , but I am a low end tax payer Brown wants to do exactly what Obama proposes on a national basis — to increase revenues by hiking taxes even further on a declining class. Both talk about paying a “fair share,” but as the Sacramento Bee reports, the 0.5% of Californians who qualified for the current class-warfare treatment in 2009 accounted for 18.8% of all taxable income in the state — and 32% of all income taxes paid. That’s hardly an issue of the higher income earners failing to pay a “fair share.”.Statistics again bare on Jerry Brown .
The number of Californians with $500,000-plus annual incomes declined dramatically from 2007 to 2009 as the state's economy stagnated, leaving fewer to tax, the California Taxpayers Association points out in a compilation of data from the Franchise Tax Board.LEAVING CALIFORNIA .The latest FTB statistical report covers the 2009 tax year, and Cal-Tax points out that it listed just 98,610 California tax returns with adjusted gross income of $500,000 or more, down nearly a third from the 146,221 in 2007. Data for 2010 are not yet available.Those 98,610 tax returns were just over a half-percent of the 14.6 million returns filed for 2009, but they accounted for 18.8 percent of the taxable income and 32 percent of the income taxes paid that year.Economists believe that most of the decline reflects lower incomes, rather than an exodus of high-income taxpayers from the state, but there are no hard data on that point.Expanding the 2009 sample to the top 1 percent (144,071) drops the cutoff to just under $400,000 a year in adjusted gross income. The one-percenters accounted for 21 percent of the taxable income that year and 35.5 percent of the taxes levied.At one time, the top 1 percent of California taxpayers accounted for half of the state's income tax revenues but their incomes, tied to stocks and other capital markets, declined the most of any income class and currently, state officials say, they are believed to provide about 37 percent of the state's income taxes. That decline accounts for much, if not most, of the state's revenue declines in recent years.Those with adjusted gross incomes of $400,000 or more paid $25.7 billion in state income taxes for 2007, but two years later, that had dropped to $12.3 billion. Their taxable incomes had declined from about $278 billion to $156 billion.
-- "In 2011, 254 California companies moved some or all of their work and jobs out of state, 26% more than in 2010, according to Irvine business consultant Joe Vranich who has been tracking these departures since 2009.The pace is accelerating, Vranich said. An average of 4.9 businesses left California each week of 2011, compared to 3.9 per week (202 total) in 2010 and one a week (51 total) in 2009. In what he calls "disinvestment events," Vranich counts companies that move jobs, facilities or headquarters out of California and "in carefully selected instances, companies making major capital investments in plants elsewhere that in the past would have been built in California," Vranich said.
Instead of having a broad-based, flatter tax structure that would produce income roughly similar to gains or losses in the economy, California’s top-heavy system produces a series of boom-or-bust revenue cycles that make long-term budget planning nearly impossible — as California’s chronic budget woes demonstrate. Only those who lack sense or are ideologically committed to class warfare would fail to learn the clear lesson from California’s example.
NOTES & COMMENTS:
When people leave these high tax states the people who want something for nothing will get the idea. Hope it's not to late for them. Since their losing their jobs anyway more will be on the move. Politicians must learn greed begets failure in the long run. And food producers must learn the same thing. Example: bread prices raises and the bread slice shrinks means make your own. Can od vegetables shrinking means can your own. And etc. Greed is a downfal .lThe flight of the wealthy is why the democrats are trying to expand federal govt.. For example, obamacare would be the same burden on every business regardless of the state where operated. There many more areas but this is just a comment not a dissertation. When a company relocates to a business friendly state, they leave most of their employees behind as tax consumers rather than the tax generators that they were. The govt. can give them jobs in govt. but that exacerbates the problem. It is a one, two, punch to the budget..