For the past few years we have been hearing about the ultra-wealthy, the millionaires and billionaires who refuse to pay their fair share. And Californians. mostly liberals, acted with outrage, to pass Proposition 30 and re-electing politicians who promised to tax the wealthy, promising that the rich would pay their fair share. Never once demanding that the politicians reduce their profligate spending or curtail the waste, fraud and abuse that was to be found almost everywhere you looked in State government.
Proposition 30 …
- Raises California’s sales tax to 7.5% from 7.25%, a 3.45% percentage increase over current law.
- Creates four high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, $500,000 and $1,000,000. This increased tax will be in effect for 7 years.
- Imposes a 10.3% tax rate on taxable income over $250,000 but less than $300,000--a percentage increase of 10.6% over current policy of 9.3%. The 10.3% income tax rate is currently only paid by taxpayers with over $1,000,000 in taxable income.
- Imposes an 11.3% tax rate on taxable income over $300,000 but less than $500,000--a percentage increase of 21.5% over current policy of 9.3%.
- Imposes a 12.3% tax rate on taxable income over $500,000 up to $1,000,000--a percentage increase of 32.26% over current policy of 9.3%.
- Imposes a 13.3% tax rate on taxable income over $1,000,000--a percentage increase of 29.13% over current "millionaires tax" policy of 10.3%.
- If this proposition is passed in November, 2012, the income tax will apply retroactively to all income earned or received since the first of the year (1 January, 2012).
So here is part one of your little misadventure in allowing legislators to increase taxes …
The sales tax will be 7.50 percent on January 1, 2013. For many counties and cities across the state, the rate will be significantly higher due to local tax enhancements.. It will be 8 percent in Orange County, and 9 percent in Los Angeles County.
Part two is another punishing blow to the construction industry which will be forced to increase your costs …
As of January 1, 2013, Californians will be forced to pay a new one-percent on wood products. You, know the stuff used in construction, remodeling, repairs to our infrastructure. In a state ravaged by the mortgage meltdown, with decaying homes begging for rehabilitation, costs are now 1% higher
And part three is an insult in every productive entrepreneur and small businessperson who elects to operate their business as a sole proprietorship or corporation using individual tax rates …
The Franchise Tax Board updated the 2012 tax rate schedules to reflect tax increases due to the passage of Proposition 30. Among other things, Proposition 30 raises the personal income tax rate on individuals making more than $250,000 per year for the next seven years. The income tax changes apply retroactively to all income earned or received since January 1, 2012.
Bottom line …
We shall see waste, fraud and abuse of taxpayer funds in the State of California continue.
We shall see corrupt politicians rewarding the unions, driving prices up, productivity down.
We shall see continuing special interest boondoggles like a $1 TRILLION train to nowhere.
We shall see a failing educational system that continues to graduate functional illiterates be rewarded – at least the teachers pensions will be rewarded – for little or no systemic improvement.
We shall see a protected political class of public employees whose jobs are guaranteed for life – complete with full salary and healthcare when they retire.
We shall see politicians obtaining personal protection from the state (state secret service) to protect them against the eventual uprising that will occur when the State goes broke and the pampered begin to whine.
But worst of all, add all of the new faux-environmental and healthcare regulations and we shall see creative and productive individuals and companies leave this state for more beneficial business climates. Leaving the state to those who cannot afford to leave, those who are here illegally – and increasing the spiraling downward trend of having too few people to pay the taxes for those who do pay any.
You are screwed! And you did it yourself. The 6,854,000 idiots who decided that it felt good to kill the State of California, or should I say, the People’s Republic of California.
You have proved that the majority of the California electorate is either stupid or corrupted.
“Nullius in verba.”-- take nobody's word for it!
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS
“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS