Taxation

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…]

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…]

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…]

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…]

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…]

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…]

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…]