How do you feel good about being taxed 10%? (San Diego, Sacramento: how much, employment)

[CaliRestoration]

Originally Posted by citidata18

The "disagreement" is that the report you shared suggested folks making 6 figures make up the majority of those leaving California

It doesn't say "the majority", you probably should read the article again because you completely missed the point of the report. It says one of the key demographics of the middle class leaving is the 30-50, $100,000-$200,000 earning class (based on IRS data) which compromises the upwardly mobile upper middle class. If people in this group are bailing from the state because of tax burden and COL issues, then it suggest that the tiers below it are probably feeling even more pain.

So how did it disagree with your report again? It doesn't. You simply misinterpreted what the author was trying to say.

"Normal people" don't make 6 or 7 figures. You're in the top 10 - 15% of income earners in this country.

$100,000 is not in the top 10 or even top 15% of earners in California, it doesn't even put you in the 80th quintile of earners in California.
Moderator cut: link removed, competitor site

People in the 80th quintile are indeed leaving the state (based on IRS data), and it's definitely because of tax burden and COL issues. So the "ocean" and "Breath-taking scenery" are not enough for those people to stay.

Now if you're talking about 7 digit earners, then that's a different story, those people are the top 1% of 1% earners in the state, we're talking about 75,000 individuals in a state of 40,000,000. I've never seen a report showing the out migration of such a small group of people, but I doubt you know the true numbers and whether the tax burden has an effect on them leaving or staying. My guess is that people who earn that much money have a smart accountant telling them to pack up and leave if they can professionally swing it.

That's why your point makes zero sense. You're conflating categories of totally different earning classes who have very different experiences in California.

[wac_432]

Originally Posted by Gaylord_Focker

That is a huge hurdle in moving to California. 10% is a ton of money if you're making 6 or 7 figures? Is it offset by anything? Lower property taxes? Lower federal tax burden?

TIA

I make six figures. My total tax (state and federal) burden is basically peanuts. SS and Medicare take the biggest bite. Federal is next, followed by state.

Of course, we're a single income household of 4, so that helps by shifting our brackets. No part of my income even comes close to the top marginal rate. I pay less in CA taxes than I would in the flat-tax midwestern state where I was born.

If I made 7 figures, I certainly wouldn't want to live a flyover country ****hole. A 10% haircut off 3/4's of my million-a-year income would be a small price to pay to live among my own kind (CA has vastly more millionaires than any of those ****hole low-tax states).

Basically if you're either rich or have a reasonably high income and you're focused on having a good life, you want to live somewhere good, and don't really concern yourself with pittances like taxes or the minor differences between Red and Blue politics. I'd consider myself a failure if I hadn't been able to leave my boring ugly bad-weather home state to live in one of the nice states with both natural beauty, outdoor sports, and big city fun:

Mountains/Skiing + Cities:
CO
maybe UT

Oceans/Surfing + Cities:
MA
NY
Maybe FL

All of the Above:
CA
Maybe OR/WA

[Vic Romano]

Originally Posted by Gaylord_Focker

Thanks no offense taken, and I guess my poorly worded post wasn't exactly helpful. I guess maybe an accountant can help me on the finances, but to me, 100k is just not a lot of money in California. If you're gonna be taxed 8-10% of that, that's 9000.00, which is several months of rent in almost any state.

Search for the California tax tables. It's easy enough...

[2sleepy]

Originally Posted by Gaylord_Focker

Thanks no offense taken, and I guess my poorly worded post wasn't exactly helpful. I guess maybe an accountant can help me on the finances, but to me, 100k is just not a lot of money in California. If you're gonna be taxed 8-10% of that, that's 9000.00, which is several months of rent in almost any state.

You wouldn't be taxed 10% on a $100,000 salary. On that salary, a married couple would have an effective tax rate of 3.13%. A married couple with 1 million in taxable wages would pay an effective income tax rate of 9.33%

California income taxes are progressive, for people earning lower salaries California state income tax is frequently lower than for several other states, the 10-12% state income tax rate only comes into play when you are earning over 1 million.

[MrHoover]

Originally Posted by CaliRestoration

Because they could live elsewhere and NOT have to deal with the highest state income tax rate in the entire country?

And have ****ty weather.

[citidata18]

Originally Posted by CaliRestoration

It doesn't say "the majority"

The report you posted a link to said "key group."

What other way is there to interpret the meaning of "key group" in the context of what group of earners are mostly moving out of California besides "the majority?"

[happly retired]

Originally Posted by citidata18

The "disagreement" is that the report you shared suggested folks making 6 figures make up the majority of those leaving California, whereas the report I shared suggested folks making less than 6 figures make up the majority of those leaving California.



"Normal people" don't make 6 or 7 figures. You're in the top 10 - 15% of income earners in this country.

The topic is about whether people making 6 or 7 figures are burdened by a 10% income tax, and I say many people earning that type of money are ok with paying a 10% income tax in exchange for the things you can't quantify while living in California, such:

*Beautiful weather almost year-round.
*Breath-taking scenery.
*Living within a short drive to multiple world class cities.
*Diverse economy.
*Proximity to a massive body of water.
*Diverse populace.

etc.

highest gas tax
utility tax
highest car registeration
highest fees for camping and access to beaches park etc
more bond taxes than you can shake a stick at - every bond is for the children or first responders
highest permit fees to remodel your home of office
highest workers comp rates
high car insurance rates
high electricity rate
etc etc etc

[happly retired]

Originally Posted by citidata18

The "disagreement" is that the report you shared suggested folks making 6 figures make up the majority of those leaving California, whereas the report I shared suggested folks making less than 6 figures make up the majority of those leaving California.



"Normal people" don't make 6 or 7 figures. You're in the top 10 - 15% of income earners in this country.

The topic is about whether people making 6 or 7 figures are burdened by a 10% income tax, and I say many people earning that type of money are ok with paying a 10% income tax in exchange for the things you can't quantify while living in California, such:

*Beautiful weather almost year-round.
*Breath-taking scenery.
*Living within a short drive to multiple world class cities.
*Diverse economy.
*Proximity to a massive body of water.
*Diverse populace.

etc.

breath taking view of a holes throwing diapers in rivers
breath taking views of 10's of thousands at the beach or camp spots
breath taking views of trash and debris in parks
breath taking view of flood damaged hills and burned out mountains - if you can get in as they are closed off alot
short drive to see homeless crap in the street
proximity to a ocean that closes due to crap overflowing water treatment plants or sky high parking fees and you cant even have a camp fire
diverse populace that likes to sleep on sidewalks in from of your business or home

yep great place

[aslowdodge]

Originally Posted by MrHoover

And have ****ty weather.

Funny you mention that. I've noticed that the Ca weather seems to be getting worse. Before I left I started seeing winter temps drop a pretty fair amount in Pleasanton. Over the last few years I've talked with friends and family in the Bay Area, Ca and they are complaining how brutally hot it's been getting. Last year the San Diego forum had several people complaining about the heat.
Maybe the weather is changing, but Ca weather seems to be getting worse so that maybe other places aren't as bad in comparison.

[Mr5150]

Originally Posted by saibot

It's nothing compared to the federal tax. State tax hardly registers in comparison when we make those payments...and since we are self-employed, nothing is automatically withheld; we need to write those big checks.

Because of Prop. 13, property taxes are low if you bought when values were low, such as 20+ years ago (we did). Otherwise, with the current cost of real estate, they are high. But at least won't get much higher over time.

No one said California was a low COL place. If you've lived here your whole live, you probably don't notice it so much, but I'm sure it is a shock if you're coming in.

This point. Our CA tax bill was in the very low three figures compared to the upper four figures Fed tax bill. Truth be told, I’d love to be in the 10% CA tax bracket, because that would mean I’d be making a million a year, net!