by Chris Banescu –
California taxpayers, already paying some of the highest income and sales tax rates in the country, will face even higher taxes this November. If California voters approve Propositions 30 and 38, the state Sales Tax rate will rise to 7.5% and the Income Tax rates paid by individuals and families at all income levels will rise significantly, with higher income taxpayers having to pay an astronomical 15.5% tax rate.
Proposition 38 will raise income tax rates for all Californians earning more than $7,316 per year. It will increase tax rates from 0.4% to 2.2% across all income levels above that limit. This represents a 17.5% to 20% increase in overall tax rates for low and middle income taxpayers and a 17.2% to 21.4% increase for higher income households.
Proposition 30 will raise income tax rates for all Californians earning more than $250,000 per year. It will progressively increase tax rates from 1% to 3% for all individuals and families earning above that level. Higher income households will see a 10.8% to 29.1% increase in overall tax rates. Prop 38 also raises the state sales tax rate to 7.5% from the current 7.25% for everyone.
Combined, both propositions raise taxes significantly for a vast majority of taxpayers in California. These punitive tax rates will further deteriorate California’s economic conditions, lead to even more job losses, and force more individuals and businesses to flee the state. Already, large numbers of middle class and high income individuals have left the state in the last decade. These latest tax increases will accelerate the process.
The chart below shows the large tax increases Californians face on November 6, 2012 if these 2 propositions pass. I compiled the data from both propositions to show how all taxpayers earning more than $7,316 will be affected.
Vote NO on Propositions 30 and 38 to help California’s economy and protect the taxpayers.