Tax hike on California millionaires would create 54% tax rate

[WestVirginiaRebel]

CNBC

A proposal to raise taxes on California millionaires would result in a top tax rate of nearly 54% for federal and state taxes.

Democrats in the California state legislature this week proposed a tax hike on the state’s highest earners to help pay for schools and services hurt by the coronavirus pandemic. Legislators say the tax hike would raise more than $6 billion a year, and would redirect funding from the wealthy to those who have been hit hardest by the Covid-19 crisis.

 

The plan follows proposals in New York state to raise taxes on the wealthy to pay for a widening budget deficit. And it adds to a growing debate over expanding inequality during the pandemic and who should pay the soaring costs to government.

Yet the California proposal would raise the highest state tax rate in the country even higher, and renew the possibility of wealthy Californians fleeing the state.

California’s top marginal tax rate is 13.3%. The new proposal would add three new surcharges on seven-figure earners. It would add a 1% surcharge to gross income of more than $1 million, 3% on income over $2 million and 3.5% on income above $5 million.

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The wealthy will take their money elsewhere. The rest of the poor idiots who keep voting Democrat will be left holding the bag.