California initiative: 45% Income Tax, 55% Wealth Tax & 36%-54% Exit Tax

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GTG

http://taxprof.typepad.com/taxprof_blog/2008/08/california-acti.html

A California activist is trying to gather the 694,354 signatures needed to place a tax initiative on the ballot that would:

* Impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate) -- 17.5% (on all of the taxpayer's income) when income exceeds $150,000 (single)/$250,000 (joint), and an additional 17.5% (again, on all of the taxpayer's income) when income exceeds $350,000 (single)/$500,000 (joint).
* Impose a one-time 55% wealth tax on assets exceeding $20 million held by a California resident or held in California by nonresident.
* Impose an exit tax of between 36.5% to 54.3% on both income and unrealized appreciation in asset values over $5 million when a resident dies or leaves California.
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I know it has a snow balls chance in hell at becoming law, but still this leaves me feeling a little uneasy, that possibly some day in the right political climate something similar could pass some day.
 
Cal is going to pass tax increases beginning in 2009 however. The state is 10 billion in the hole, and has already announced that taxes will be going up. Given that it is now second only NY in tax burden, that is scary.

And why I am leaving the state before 2009!
 
Quote from blackjack007:

for 2008, calif's total tax burden ranks it #6. nj is #1.

http://www.taxfoundation.org/news/show/335.html

you can move to alaska, they're lowest.
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All I care about is income tax. The pay as you go shit doesn't bother me, and I move too often to buy a home (don't want one anyway).

Just looked it up, and I stand corrected. It was Vermont that had higher income tax than Cal. No one else. However, if you make over 1 million, Cal is highest in the nation at 10.3%. I'm not quite there yet.

I think I'm going to either Durango or Crested Butte, CO. 4.68% tax. Yes, this makes a difference to me. I despise taxes.

http://www.taxadmin.org/fta/rate/ind_inc.html
 
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