Mike Huckabee News
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.