California Tax Mess

Dec 10 2012

Two economists at Lynchburg University in Virginia have calculated what the top marginal tax rates will be in all 50 states if we go over the fiscal cliff and the Bush tax cuts expire.  You won’t be shocked to hear that Californians will have the highest top tax rate in America, but you might be shocked at the amount.  Adding up federal, state and local income taxes, Social Security and Medicare, plus the new taxes they voted to put on themselves last month, Californians will face a top tax rate of nearly 52 percent.  Only New York and Hawaii also have top tax rates of over 50 percent.  And some of those so-called “rich Californians” are going to feel the tax bite, considering that a $250,000 income in Silicon Valley buys you the same lifestyle as someone in Fort Smith, Arkansas, who makes $60,000.  The economists also pointed out one more worrisome thing: blue states that keep voting for higher taxes tend to be run mostly on revenues from a handful of high earners, like doctors, lawyers, tech workers and small business owners.  If they ever get tired of being piñatas and move out, those states’ finances could get even uglier in a hurry.

Comments 1-5 of 23

  • Zoran

    11/15/2013 08:18 AM

    I caught the last half of the Mack Show inrtveiewing the navy seal friend of Daughtery and the other hero defending the embassy a couple weeks ago, I believe his name was Brandon.THIS INTERVIEW HAS TO BE AIRED AND TALKED ABOUT 24 / 7 ON TV AND RADIO AND IN PRINT NEWS MEDIA. MR. BRANDON HAS TO CONSTANTLY TELL THIS STORY so we can get Obama and company out of there asap. We must regain our authority and strength in the world!! Thank you so much for the Mack Show!! This one was hugely inspiring and informative for our nation! This must be told over and over again until we all, as Americans, see the truth of it and get rid of the incompetence in our federal government leadership under Obama.Appreciate, David~

  • William Johnson

    01/05/2013 09:16 AM

    California is the worst state in the nation to do business with because its cities are too polluted,the taxes are too high,earthquakes,wildfires,mudslides,illegal immigrants,violent street gangs,high gas prices that lead to a gas shortage as well as a power crisis,too many Democrats and not enough Republicans,etc.Also the state government is mismanaged lead by Gov Jerry Brown as well as former Gov Gray Davis.Businessess have move out of California but pretty soon their sport teams might move out of California.The state tax system needs a complete overhaul to make it better and understandable for the people of California.

  • Teri DeMarzo

    12/12/2012 08:52 AM

    Well California does have to pay for the illegal immigrants. Thay have more rights than I have as a legal citizen. They get food stamps, hud houseing, and they don't pay taxes. In Costa Mesa and Santa Ana spanish is the American language. The school by my house is 93% spanish. They get free breakfast and lunch everyday. Our tax $ at work. California is in the tank!Wish I had the money to move away, but my taxes are too high, and going higher

  • Kristen Stez

    12/11/2012 08:47 PM

    As a California native, I am so sad to know that the people of this state continue to have their heads in the sand about the impact of high pension and benefit plans for our government workers. The saddest part of all is that I see no reason to believe that anything will get any better anytime soon. For an eternal optimist, this is a hard reality to face. I think about leaving here everyday, but, for now I've decided to try and be part of the solution, instead of part of the problem. In the meantime, I remind everyone that will listen to stop complaining and realize that "the people get the government they deserve." If the people don't change their minds and decide to demand better, we really cannot blame the government because the problem is us, not them. Wake up, California!

  • Angelina Sanchez

    12/11/2012 05:05 PM

    I live in California and I can't believe the ignorance of the people who live here. It's sad because most of my family and friends think things are great even though some have lost jobs. But they are getting unemployment and food stamps and they argue that they are better off than they were four years ago. It's gotten to the point that we don't talk or see each other anymore. I look around and see our communities and businesses closing down, and there is so much moral decay that I don't recognize our country anymore.

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