California Income Tax Rates 2013 and Beyond, Highest Taxes in America

California Income Tax Rates Highest in America by Chris Banescu –
Following the passage of Proposition 30 in November 2012, California’s income tax rates have reached an astronomical 13.3% rate. Not only does California now have the most progressive income tax rates of all the states, individuals begin paying an 6% rate at $27,898 and an 8% rate at $38,727 in income, but it now surpassed Hawaii (11% top rate) as the state with the highest income tax rate in America.

According to a 2013 survey from Chief Executive magazine California’s business climate ranks dead last among all 50 states. Is it any wonder that so many companies, corporations, and high income individuals continue to flee California and relocate to other states?

Proposition 30 raised income tax rates for all Californians earning more than $250,000 per year. It progressively increased tax rates from 1% to 3% for all individuals and families earning above that level. Higher income households now face a 10.8% to 29.1% increase in overall tax rates. [Read more…]

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Top State Income Tax Rates for All 50 States

Top State Income Tax Rates Americaby Chris Banescu –
The Tax Foundation has released a comprehensive graphic that summarizes the top state income tax rates for all 50 states. It provides a very clear picture of the tax situation across the United States. The chart is reproduced below.

California (13.3%), Hawaii (11%), and Oregon (9.9%) have the highest marginal tax rates in America. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, on the other hand, are the only seven states with no income tax.

The Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. [Read more…]

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Superpower Role Reversal And The Flat Tax Miracle

Russia Flat Tax Capitalism Freedomby Jeff Haden –
While the U.S. punishes millionaires, Russia and China reward them. In the upside-down era of Barack Obama, the capitalists act like communists and the communists act like capitalists.

Our multimillionaire president frowns on “millionaires and billionaires” and soaks them with higher taxes. But Russia loves them and even offers refugees of high-tax countries asylum.

Last week, the Kremlin, once headquarters of the Evil Empire, granted millionaire French actor Gerard Depardieu Russian citizenship so he can avail himself of Russia’s 13% flat tax and avoid his home country’s proposed new 75% supertax on millionaires. [Read more…]

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California Faces Large Tax Increases with Propositions 30 and 38

California Tax Increases 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. [Read more…]

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Franchisors Warn Obamacare Will Halve Profits

Franchisors warn Obamacare will halve profitsby Paul Bedard
The International Franchise Association held a convention in Washington this week where most of the Radio Shack, Dunkin Donuts, Curves and other franchisers were grumbling about new federal regulations, especially the impact of Obamacare.

Most, said Atlanta Taco Bell and Kentucky Fried Chicken franchiser David Barr, presumed that the reports about how hard Obamacare will hit them were overblown. “They had their head in the sand,” he told Secrets.

That is until he pulled out his powerpoint showing how funding Obamacare will cut his –and likely their– profits in half overnight. [Read more…]

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Win an Olympic Medal, Pay the IRS

Win an Olympic Medals, Pay the IRS by Chris Banescu –
What better way for the U.S. government to “thank” our Olympic athletes for all the years of hard work, enormous efforts, and many personal and financial sacrifices in pursuit of excellence, than to compel them to pay taxes on their Olympic medals and prize money. Yes, my fellow Americans, U.S. Olympians must pay income taxes on both the medals and the prize money granted for gold, silver, and bronze.

Besides the actual gold, silver, and bronze medals given to the top three Olympians in each event, prizes are also awarded. For the London Olympics athletes receive $25,000 for gold, $15,000 for silver, and $10,000 for bronze.

According to the IRS, American medalists must report as income not only their prize money but also the market value of the actual metal in each medal they win. [Read more…]

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Simplifying the Tax Code

Simplifying the Tax Code Paying taxes can be tough — it’s complex, convoluted, time consuming, and often very frustrating. The US Tax Code has become a monstrosity that destroys competitiveness and productivity. It must be radically simplified!

In this video Randall Holcombe, Professor of Economics, explains how we can simplify the tax code by eliminating loopholes for special interests and lowering tax rates and how this helps improve economic growth and promotes wealth creation. [Read more…]

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Tax Cuts, Less-Intrusive Gov’t Help Canada Soar

Canada flag low taxes economic success by IBD Editorials –

Success: Away from the low growth and high regulation of an America under Washington’s thumb, our northern neighbor is economically strong. As 2011 ends, Canada has announced yet another tax cut — and will soar even more.

The Obama administration and its economic czars have flailed about for years, baffled about how to get the U.S. economy growing.

In reality, the president need look no further than our neighbor, Canada, whose solid growth is the product of tax cuts, fiscal discipline, free trade, and energy development. That’s made Canada a roaring puma nation, while its supposedly more powerful southern neighbor stands on the outside looking in. [Read more…]

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Why 20% Should Be New 25% In Reforming Corporate Rate

Investors Business Daily by Ryan Ellis –

If there’s a common denominator in tax reform and economic growth packages, it’s this: the corporate rate is too high, and needs to come down for the sake of keeping our employers competitive internationally. Even most on the Left have accepted this.

The most common tax-rate target is 25%. Because of how the world has been moving in the direction of low corporate tax rates, however, this is no longer good enough — and might even result in a worse outcome than the status quo.

First, a little background. A generation or two ago, the entire developed world had high corporate income-tax rates. In 1981, the developed nation average was 47%. Canada had a 51% rate. The United Kingdom levied a rate of 52%. [Read more…]

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Coddling Misinformation About Taxation

High Taxes Misinformation about Taxation Buffet by Chris Banescu –
Warren Buffett and President Obama claim that the rich do not pay enough taxes. They both blame the American tax code of being unfair and coddling the rich. Both have been pushing the same class-warfare narrative for many years, using current US capital gains and dividends taxation rates as evidence for their big government progressive agenda. Both are spreading misinformation about all the taxes corporations and individuals actually pay.

As far back in 2007, Mr. Buffet, the third-richest man in the world, began criticizing the US tax code for its low tax rates on dividends and capital gains from long-term investments. One of his most infamous statements, one often repeated by the Left to support its punish-the-rich schemes, was made in a speech at a $4,600-a-seat fundraiser for Senator Hillary Clinton in New York:

“The 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter. If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.”

[Read more…]

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Your Money Belongs To Politicians

by Priscilla Petty –
If I had to pinpoint one single way in which our country has gone astray, I’d say that it’s when we allowed politicians to manipulate the tax code to benefit those whom they favor. There are many ways, of course, in which our country’s trajectory has taken a downward rather than upward turn, but politicians’ control of individual citizens’ money, their taking great quantities of it as though it actually belonged to the politicians to use for their own benefit and for politicians’ chosen purposes, has bankrupted us not only fiscally but morally. [Read more…]

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Yes, Taxes Do Change Behavior

10/23/2010 – Tom Roberson –
Bloomberg Businessweek details the complicated “Dutch Sandwich” tax strategy employed by Google to avoid the massive tax hit it would incur on overseas profits repatriated to the U.S. After reading this and seeing the lengths that U.S. companies go to protect their profits, can anyone seriously believe that taxes do not influence behavior? Should anyone be surprised that these innovative companies are able to develop innovative tax avoidance strategies? Let me point out that these are perfectly legal tax avoidance strategies and it is management’s duty to pursue every legal opportunity to minimize corporate tax obligations to maximize shareholder value. [Read more…]

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The Obama Recovery

Obama Recession8/23/2010 – Jeffrey Folks –

During the same week in which the president was vacationing in a $50,000-per-night home in Martha’s Vineyard, half a million Americans were standing in line, waiting their turn to apply for unemployment benefits. Those benefits are about $400 a week, not enough to put food on the table, pay the mortgage and car payments, and cover medical and other expenses. Not only that, but they run out (or used to) at 26 weeks. Even with Congress’s election-year largesse, which has tacked on an additional 73 weeks, unemployment benefits must run out at some point. More and more Americans — those who have begun calling themselves the 99ers — are now arriving at that point. [Read more…]

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Economy Needs Heart Transplant, Obama Offering Band-Aid

Economy Needs Heart Transplant Not Band-AidAmerica’s economic situation needs an emergency heart transplant, but Obama and the Democrats keep offering band-aids instead. We need a major change in government economic, tax, and fiscal policies not more government bailouts. Yet the president is doing nothing to reverse the enormous uncertainty fostered by his own administration’s aggressive anti-business and pro high-tax initiatives and rhetoric.

In the latest indication that our president has no clue why businesses are struggling and unwilling to hire, Obama is trying to force through another $30 billion government bailout program to “help banks boost lending to small businesses.” Unfortunately, it’s not the lack of available funds that are stopping businesses from expanding and generating new jobs. It’s the massive economic uncertainty and instability created by misguided government mandates (especially the oppressive regulations of ObamaCare), coupled with the massive tax increases coming in January 2011, that have spooked companies and forced them into defensive economic positions. [Read more…]

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The New York Times, Cheerleader for Higher Taxes

The New York Times Cheerleader for Higher Taxes
In what can only be described as a partisan, pro-Obama puff piece, The New York Times has now proclaimed on its Economix Blog that tax increases are the best way to “stimulate” our economy and help America reach “fiscal sustainability”:

The single biggest step our government could take this year to address the structural deficit would be to let the tax cuts expire. And a credible commitment to long-term fiscal sustainability should reduce interest rates today, helping to stimulate the economy.

[Read more…]

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Obama Buying More Union Votes With Your Tax Dollars

Obama Unions CorruptionPresident Obama has pledged more of your money to protect the unions and secure their vote. The administration demanded and got $26 billion taxpayer dollars to spare 300,000 teachers and other public workers from the unemployment lines.

The hundreds of billions of taxpayer money already spent by Obama and the Democrats since 2009 to pay off their union supporters was apparently not enough. Despite giving $100 billion in new funding to the Department of Education (DOE), courtesy of The American Recovery and Reinvestment Act (ARRA) of 2009, in addition to the $25 billion bailout that saved the GM and Chrysler auto union workers, more is needed to thank them for their continuing support and unquestioning loyalty.[Read more…]

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The Worst of Both Worlds

7/24/2010 – Henry Oliner –

Karl Marx understood that capitalism is intrinsically productive but saw an inherent unfairness in any value other than that provided by labor. Marx also understood that individual incentives to produce would inevitably lead to overproduction and painful contractions. To avoid these contractions and their impact on labor costs, he believed the proletariat should, and inevitably would, exercise control over the means of production. Some true believers insist that he sought a utopian ideal rather than an authoritarian state, but the control of production by the state became essential to their objective. [Read more…]

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Wealthy Shift Their Income to Avoid Higher Taxes

6/8/2010 – Robert Frank –
In his Wall Street Journal op-ed Monday, famed supply-sider Arthur Laffer argues that higher taxes on the wealthy rarely work because the wealthy simply shift their income.

President Obama’s upcoming tax increases, he says, are encouraging the wealthy to take cash and income off the table this year, robbing from next year’s growth and spending. As a result, he says “The economy will collapse in 2011.” [Read more…]

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Tax Hikes and the 2011 Economic Collapse

Economic Collapse 20116/6/2010 – Arthur Laffer –

Today’s corporate profits reflect an income shift into 2010. These profits will tumble next year, preceded most likely by the stock market.

People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies.

It shouldn’t surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives.

Likewise, who is gobsmacked when they are told that the two wealthiest Americans—Bill Gates and Warren Buffett—hold the bulk of their wealth in the nontaxed form of unrealized capital gains? The composition of wealth also responds to incentives. And it’s also simple enough for most people to understand that if the government taxes people who work and pays people not to work, fewer people will work. Incentives matter. [Read more…]

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How to Cripple the Free Economy

Socialist Policies Undermine American Economic Prosperity

The socialist policies implemented by the Obama administration and the Democrat leadership undermine America’s economic prosperity and prolong the misery for millions of companies and workers. Despite passing multi-trillion dollar government tax and spend initiatives, numerous bailouts of failed businesses, and repeated extensions of government benefits, Americans are suffering and the economy is languishing. Nationwide the unemployment rate has risen to 9.9%, while mortgage defaults and foreclosure rates have surged to record numbers.

Even with the tens of billions of dollars Congress has spent on preventing consumer mortgage defaults and home foreclosures, things have not improved much. How could they? Such government bailout measures are temporary band-aids that fail to address the structural problems our economy faces. They only delay the inevitable and push the problem further down the road. It doesn’t matter that house payments are now lower and the government has picked up the tab for a few months. If Americans cannot find a job or raise the capital to start a business they won’t have the money to pay even reduced mortgage payments. [Read more…]

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The Welfare State’s Death Spiral

5/10/2010 – Robert J. Samuelson –
Welfare State Death Spiral
What we’re seeing in Greece is the death spiral of the welfare state. This isn’t Greece’s problem alone, and that’s why its crisis has rattled global stock markets and threatens economic recovery. Virtually every advanced nation, including the United States, faces the same prospect. Aging populations have been promised huge health and retirement benefits, which countries haven’t fully covered with taxes. The reckoning has arrived in Greece, but it awaits most wealthy societies.

Americans dislike the term “welfare state” and substitute the bland word “entitlements.” Vocabulary doesn’t alter the reality. Countries cannot overspend and overborrow forever. By delaying hard decisions about spending and taxes, governments maneuver themselves into a cul-de-sac. To be sure, Greece’s plight is usually described as a European crisis — especially for the euro, the common money used by 16 countries — and this is true. But only to a point. [Read more…]

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How Data On Income Distribution Are Misunderstood And Misapplied

Investor’s Business Daily | by Thomas Sowell | Jan. 8, 2010

Most intellectuals outside the field of economics show remarkably little interest in learning even the basic fundamentals of economics. Yet they do not hesitate to make sweeping pronouncements about the economy in general, businesses in particular, and the many issues revolving around what is called “income distribution.”

Famed novelist John Steinbeck, for example, commented on the many American fortunes which have been donated to philanthropic causes by saying:

One has only to remember some of the wolfish financiers who spent two thirds of their lives clawing a fortune out of the guts of society and the latter third pushing it back.

[Read more…]

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Don’t Tax You. Don’t Tax Me. Tax That Guy Behind the Tree!

American Thinker | by Thomas Sowell | Jan. 8, 2010

Politicians like Barack Obama try to make you believe that someone else will pay the tax he wants to impose. For example, President Obama said he will increase taxes only for those making more than $250,000 per year. Other politicians, at other times, have told us that we will tax corporations rather than individuals, or tax some other out-of-favor group or product (sin tax) rather than the majority of individuals or the general sales tax.

The problem is that in reality, the guy behind the tree is the vast majority of us…yes, the same people who were promised that they would not pay the proposed tax increase. This is quite easy to see in some examples. [Read more…]

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The French Model

The Washington Times | by Richard W. Rahn | Aug. 26, 2009

Why does it appear France is bouncing back more quickly from the recession than the United States? France has long been known for having an economy that suffered from too much government interference, too-high taxes and destructive union activity. Yet it grew 1.4 percent in the second quarter of 2009, while the U.S. economy continued to decline.

The United States and Britain have had the largest “stimulus” programs of the major economies (as measured by increases in government spending and deficits relative to gross domestic product) and yet they are not moving toward recovery as rapidly as most other countries that had far smaller stimulus programs or none. [Read more…]

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The Assault on American Business

The message from Washington is clear and getting louder by the day. If you run a successful business you face excessive government regulations and higher levels of taxation for years to come. The more productive and profitable you become, the more you will be forced to pay for the privilege of operating in this country. This threat is real and it appears that many companies and business owners are taking steps to protect themselves.

President Obama’s anti-business and anti-competitive campaign messages made executives and business owners apprehensive ahead of the January 2009 presidential inauguration and the Democrats obtaining control of Congress. Coming in the midst of one of the worst financial crisis and economic recessions in recent memory these promises had predictable results: businesses aggressively cut expenses, decreased their capital expenditures, drastically reduced their payrolls, and hunkered down to weather the current crisis and deal with the long-term consequences of punitive government actions. [Read more…]

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