High-income Californians may pay nation's highest tax rate of 52% (college, calculated)

[analyze_this]

High-income Californians may pay nation's highest tax rate
Thanks to passage of Proposition 30 last month, high-income Californians would pay the nation's highest marginal income tax rates -- nearly 52 percent -- if President Barack Obama and Congress fail to make a deal to avoid the so-called "fiscal cliff," according to a new study.

Without a fiscal cliff deal to the contrary, the Bush era tax cuts on high-income taxpayers would expire next year and rates would return to their previous levels.

Gerald Prante, an economics professor at Lynchburg College in Virginia, and Austin John, a Lynchburg economics student, calculated marginal tax rates -- the highest rates on the highest levels of income -- for all 50 states. They combined state, federal and, where applicable, local income taxes, plus payroll taxes for Social Security and Medicare and included the deductibility of some taxes.

Proposition 30 added three percentage points to the marginal state income tax rate for California's highest-income taxpayers, bringing it to 13.3 percent. That action raised California over other high-tax jurisdictions to a marginal rate of 51.9 percent, slightly higher than New York City's level. Hawaii was the only other place with a calculated rate above 50 percent.

Their report was published by the Social Science Research Network.

Read more here: Capitol Alert: High-income Californians may pay nation's highest tax rate

[analyze_this]

This is a typical scaremongering sensationalist article from a right wing rag. So what will be the effective tax rate that they will pay after all the deductions are taken into account? My guess is less than 20%. Stated tax rate does not equal effective rate after deductions.

[ralphkramden]

Yeah. And while everybody is freaking out about taxes -- while real life is passing them by -- consider this from my hometown rag:

Most Americans face lower tax burden than in the 80's
http://www.nytimes.com/2012/11/30/us...pagewanted=all

Get over it. Have a beer and a pickled egg.

[Reason42]

Originally Posted by ralphkramden

Yeah. And while everybody is freaking out about taxes -- while real life is passing them by -- consider this from my hometown rag:

Most Americans face lower tax burden than in the 80's
http://www.nytimes.com/2012/11/30/us...pagewanted=all

Get over it. Have a beer and a pickled egg.

Ain't riding in your cab...

[oldtrader]

Just think, those high income people just have to move to some place like Texas, and get a raise of over 13%. Plus when you consider the cost of living difference, they can more than double their effective income in addition to that 13%. California has to worry that they won't leave and take their businesses with them, as well as take a lot of jobs out of California.

Oops, come to think about it, and realize that that is exactly what is happening.

[Mr5150]

Originally Posted by oldtrader

Just think, those high income people just have to move to some place like Texas, and get a raise of over 13%. Plus when you consider the cost of living difference, they can more than double their effective income in addition to that 13%. California has to worry that they won't leave and take their businesses with them, as well as take a lot of jobs out of California.

Oops, come to think about it, and realize that that is exactly what is happening.

Living in Texas is not worth it. But if money is your focus, have at it. As for me, I'd rather live modestly in paradise than to be rich in a place that sucks. People who focus on money tend to not be happy.

[TVC15]

Originally Posted by Mr5150

Living in Texas is not worth it. But if money is your focus, have at it. As for me, I'd rather live modestly in paradise than to be rich in a place that sucks. People who focus on money tend to not be happy.

Depends on where in Texas you live. Many parts of Houston, Austin, Dallas are great places to live and well worth it.

There are some very horrible places to live in this so called paradise of CA. You could not pay me enough to live in some of the non-coastal areas or the Central Valley.

You will also find that people are much more friendly and down to earth there. I was just there over Thanksgiving and you notice this as soon as you step off the plane.

But I always knew this since I am from there.

[Fontucky]

Originally Posted by TVC15

But I always knew this since I am from there.

Yes, you've mentioned that one or ten thousand times... and your War and Peace length location line doesn't count in that estimation.

[jeffredo]

Originally Posted by ralphkramden

Most Americans face lower tax burden than in the 80's

Not to mention the 1960s and 70s - tax rates on upper incomes where much higher. Tax rates are at historically low levels vs. any other period since the 1920s or 30s yet all people do is moan and groan about paying them at all while the deficit soars.

[never-more]

Originally Posted by TVC15

Depends on where in Texas you live. Many parts of Houston, Austin, Dallas are great places to live and well worth it.

There are some very horrible places to live in this so called paradise of CA. You could not pay me enough to live in some of the non-coastal areas or the Central Valley.

You will also find that people are much more friendly and down to earth there. I was just there over Thanksgiving and you notice this as soon as you step off the plane.

But I always knew this since I am from there.

If your a middle-to-upper class WASP in Texas, it's obvious your life is going to be amazing there. But what if your a middle-to upper class Black, Asian, Hispanic, etc? There's a reason why many middle class Asians and Hispanic families are staying put while their White counterparts flee.