California voters approve tax increases

• JU-ICE

  ​Caught this from the California election and thought it was interesting after an election driven by the term “fair share”. The voters had two tax increase initiatives on the ballot Prop 30 and Prop 38. So, when given the choice for all to put in their fair share California voters spoke loud and clear. Prop 30 passed with 53% of the vote while Prop 38 was defeated with 72% voting against. They say as California goes, so goes the nation.
  
  [h=1]Prop 30[/h]Raises sales tax from 7.25% to 7.5% and created four higher tax brackets with corresponding income tax increases:
  $250,000: from 9.3% to 10.6$
  $300,000: from 9.3% to 11.3%
  $500,000: from 9.3% to 12.3%
  $1million +: from 9.3% to 13.3%, all retroactive to 1/1/12, will be for seven years and create $6 billion annually. Would be imposed on the top 3% of tax payers. 89$ of money would go to public schools while 11% would go to state colleges.
  
  [h=1]Prop 38[/h]Increase personal income tax rates on all earning over $7316, using sliding scale to add to the current rate of 9.3%, from .4% on the lowest earners to 2.2% for individuals earning over $2.5 million. This would be for 12 years and create $10 Billion annually. During the first four years, allocated 60% of revenues to K-12 Schools, 30% to repaying state debt and 10% to early childhood programs. After four years, allocates 85% to K-12 Schools and 15% to early childhood programs.
• sleeper

  

  Top 10% of earners in this country pay 70% of federal income taxes. Anyone who thinks they aren't paying their fair share is in fact an idiot.
• gut

  When I look at that what stands out and alarms me:
  9.3% state tax rates and the liberal "model" for the country is still an economic disaster.
  
  And 53% is kind of squeaking by. There was a massive push - and interest/incentive - for the union there. Keep raising the taxes and chasing more and more businesses away. No wonder their employment numbers suck. CA is basically Italy.
• justincredible

  

  sleeper;1315999 wrote:Top 10% of earners in this country pay 70% of federal income taxes. Anyone who thinks they aren't paying their fair share is in fact an idiot.

  Indeed.
• gut

  sleeper;1315999 wrote:Top 10% of earners in this country pay 70% of federal income taxes. Anyone who thinks they aren't paying their fair share is in fact an idiot.

  So obvious we will have a consumption tax eventually. There's just no feasible way to close the deficit otherwise.
• fan_from_texas

  I'm always confused by what constitutes a "fair share." When half of people have no skin in the game, most Americans aren't paying their fair share.
• believer

  

  fan_from_texas;1316294 wrote:I'm always confused by what constitutes a "fair share." When half of people have no skin in the game, most Americans aren't paying their fair share.

  See election results....
• Terry_Tate

  

  http://www.nationalaffairs.com/publications/detail/who-killed-california
  
  I just read this the other day. 3 years old but nothing surprises me about the vote after reading that article.
• tk421

  

  you mean people voted for a tax increase on others but not themselves? I'm shocked, shocked I tell you.
• gut

  Terry_Tate;1316306 wrote:http://www.nationalaffairs.com/publications/detail/who-killed-california
  
  I just read this the other day. 3 years old but nothing surprises me about the vote after reading that article.

  Looks like a good article. Probably won't be many surprises, but hopefully I'll get around to reading it.
• gut

  ccrunner609;1316299 wrote:Well the liberal media isnt pushing the agenda to tell the country that the "fair share" that the leftist politicians are talking about isnt really fair. The media tells everyone that the rich still arent paying enough

  "Fair share" is very debateable. If you tax a guy that makes $100M 99%, he still has $1M (but obviously in that scenario he'll take in nowhere near $100M, or he'll find ways to defer big portions of it).
  
  But I'd just settle for seeing the liberal media acknowledge that the debt/deficit ARE NOT mainly the result of not taxing enough and that raising taxes CAN'T come close to closing the deficit.
  
  I'm in favor of safety nets and I think the ideals of socialism is a wonderful thing - who wouldn't like a world where everyone has everything they WANT? I just ask that you only spend what you pay for.
  
  My increasingly alarmist concern are the hidden and future taxes that result from these policies. If you can share that same concern then you start to understand what businesses are facing. Obama tells us the game is rigged, but no one wants to play because no one knows the rules. If we know the rules, we can adjust and plan accordingly. But such uncertainty is how you cripple a recovery.