Prior to Prop 30 passing, CA already had the 2nd worst state income tax rate in the nation. Currently our 9.3% tax bracket starts at $48,029 for people filing as individuals.
Now our “millionaires’ tax” rate is 13.3% – including capital gains. Increased income taxes now start at $250K. And it is RETROACTIVE to 1 January, 2012!
So today CA has BY FAR the nation’s highest state income tax rate. We are 21% higher than the 2nd highest state (Hawaii), 34% higher than the 3rd highest state (Oregon), and a heck of a lot higher than all the rest – including 7 states with zero state income tax.
CA is so bad, we also have the 2nd highest state income tax bracket. AND the 3rd! Plus the 5th and 7th highest tax brackets.
Stated differently, we have 5 of the first 7 highest state income tax brackets — including the top 3. In the Olympics, that would be considered a medal sweep!
This retroactive 30% income tax increase to the start of the year is a kick in the head for wealthy folks. The message is clear — “Get out! We don’t want ‘your kind’ in California.”
The question now is this: As a result of Prop 30, how many wealthy people (and their businesses) will leave, and how many FEWER will be coming to our “Golden State?”
Here’s the latest update to my dreary fact sheet — revised 8 November. It’s only getting worse.