In this article from the New York Times, Many of the upper class people on California are considering leaving due to the raise in taxes on the wealthy. In California, federal state income tax has risen to 51.9% on earnings over $1 million put forth by congress near the end of 2012. Many of the wealthy people from California, like Tiger Woods, have already moved and others are considering doing the same.
Do you agree with the California laws of taxing the rich more heavily than the poor? or do you agree with taxes being equal for all?
State taxes have a lot to do with where people choose to live! Why do you think so many retirees move to Florida? Florida has one of the lowest taxes on retirement. I do applaud California for their efforts towards equality, but at the same time these efforts are hurting them as a state. If wealthy people are moving elsewhere looking for tax shields, then the tax efforts completely backfired. Bottom line, now that California has the highest taxes on the rich, people will be leaving!
ReplyDeleteIn regards to the article, I think it is hilarious that Governor Rick Perry of Texas began advertising the benefits of living in Texas on radio stations in California. We can infer from his twitter feeds that Rick Perry seems to be getting a kick out of the whole situation. When I ran a google search on Rick Perry, the article below titled “ Texas Gov. Rick Perry coming to Bay Area to hunt for rich people” is the first thing that came up. Who would of thought millionaire could be such a hot commodity!
Check it out: http://www.mercurynews.com/business/ci_22541097/texas-gov-rick-perry-coming-bay-area-big
This is a touchy subject. Sometimes I feel like the rich should get taxed more and then again, it should be equal taxation. I think individually, it should be the same for everyone. As for huge companies or corporations, they should be taxed more to help the state and local governments. If the rich get taxed more than everyone else, they should have some incentive to stay in their homes. Having extra benefits from the government for having to pay more money during tax time.
ReplyDeleteI agree with Brandon. While taxing the rich more brings in more money it also has some consequences that may reverse this revenue like this article points out. Regardless, there are benefits and costs to any taxing strategy and the government needs to weigh which costs they are willing to deal with or not to get to the best situation possible. Maybe the amount of rich Californians willing to stay and pay the higher taxes outweighs the cost of losing some? I would like to see those numbers. California needs to do something different though, maybe this will help?
ReplyDeleteI think that when you are taxing any persons over 50% of their total earnings you have to be in the wrong. We look toward the wealthy to invest their earnings back into our economy and when a government is taking over half of the money you have spent wisely investing it acts as a deterrent and will significantly slow our economy down. Leading Americans to believe even when they work hard to earn more than expected they will be giving half away.
ReplyDeleteThis situation identically mirrors that of France and their new taxation for the rich. Except rather than a question of nationalism, one can simply leave the state in this case.
ReplyDeleteIf that is the precedent California wants to set more power to them. I only hope that they stick to their guns in the face of their rich and powerful jumping ship. A state's government should send a message to their people how they want the dynamics of their state to be, but that identity needs to run true. Flip-flopping is what I hate, but states should make moves like this is they see fit.
ReplyDeleteI am not a big fan of progressive taxes but if the state thinks that was good, well they played the wrong card this time. In times like these its best not to unleash high taxes on the rich. Who sees it fit to tax over 50% of income anyways? You are essentially working for the state hence i think people should relocate!
ReplyDeleteThis is a touchy topic that can get very political but I'll say my opinion. I definitely think it is absurd to tax the rich at such high levels. I understand the motive of California, but 51.9% is too much. I respect those leaving because I would do the same. I do agree with Travis, though, that states should do what makes sense for them. But, this time it looks like they made the wrong choice.
ReplyDeleteI guess California can have such a high tax rate and even gonna increase that high tax rate into higher because it is the main business field in the West that so many big corporations stay in. However, if its tax increase can even move the corporations out of the state, not only the rich residents, will Cali government be able to pay off that costs of losing rich people and companies that allow the state government to run?
ReplyDeleteWow! I never knew the rich were being taxed so much. In my opinion this is absolutely ridiculous. Although, it might make sense to tax the rich more, I think it's unacceptable. Some of the rich and I mean "some" have worked extremely hard to get where they are and they should not be punished for their success.
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