◼ There’s a core fact to keep in mind – rich people seldom will leave the U.S. to avoid taxes, but – if taxes are deemed too high – many WILL leave a state. Other states have experienced this outflow of the wealthy – and with FAR lower state income tax increases in their millionaire’s tax than California’s Prop 30 and 38. - Richard Rider/Chairman of the San Diego Tax Fighters/Fox&Hounds
It’s important to understand how California income taxes stack up against the other 49 states. California already has the 2nd highest state income tax rate in the nation (behind Hawaii’s 11.0%). Our 9.3% tax bracket starts at $48,029 for people filing as individuals. Our 10.3% tax starts at $1,000,000.
Consider the Brown “millionaires’ tax.” It would raise that rate to 13.3%, starting at $500,000 – including capital gains. If approved, CA will be by far #1 in income tax rates. We will be 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 seven states with zero state income tax.
