Do the proposed taxes increases affect you? Proposition 30 in California won’t affect my income tax, but it will my sales tax like everyone else to the tune of .25%. Federal taxes are going up in 2013 according to the budget. So why are people in California arguing that the Proposition 30 tax increase of up to 30% not going to affect wealthy people’s behavior? It doesn’t make sense.
Michael Hiltzik of the Los Angeles Times wrote a scathing article titled Would Prop. 30 really drive millionaires out of California? He argues that data doesn’t support millionaires leaving California with tax increases in the past.
I argue that California hasn’t had a 30% tax increase on top of a federal tax increase before with which to measure against.
For the sake of everyone, I have created a nice, easy to read chart of what these tax increases look like:I know my share of wealthy people, business owners, CEOs, and others. There is something called a tipping point where frustration reaches a level where action occurs. California already has a poor economy that is not recovering well, an unemployment rate of an official 10.2%, and we want to potentially drive more business away?
Proposition 30 has many issues, such as not addressing the fundamental failure to properly fund education, dealing with the perennial pension shortfall, and the structural problem of three layers of management with the County Offices of Education. But driving more business away to other, tax friendlier states, is a terrible idea.
If you live in California, vote no on Proposition 30.