[CA Gov. Jerry] Brown this week submitted more than 1.5 million signatures to place the tax measure on the ballot. It would temporarily raise the state sales tax, already the highest in the U.S., to 7.5 percent from 7.25 percent. It would also boost rates on income starting at $250,000. The 10.3 percent levy on those making $1 million or more would rise to 13.3 percent, the most of any state. Bloomberg
okay. Let’s start with the word TEMPORARILY. When has a tax been temporary? According to Wikipedia:
After the tragic Johnstown (PA) Flood: As a result of the damage from the 1936 flood, the Pennsylvania General Assembly imposed an emergency tax on all alcohol sold in the Commonwealth. The “temporary” 10% tax was initially intended to help pay for clean up, recovery, and assistance to flood victims. The tax still exists and in 1963 was even raised to 15% and again in 1968 to 18% (not including the statewide 6% sales tax). The nearly $200 million collected annually no longer goes to flood victims, however, instead going into the general fund for discretionary use by lawmakers.
So much for targeted temporary taxes, huh? (But you can pat me on the back for great alliteration!)
But back to California and Gov. Moonbeam… this millionaires tax will likely make the ballot this November and according to this website no millionaires will be leaving CA. All their studies show that raising taxes on the wealthy does not result in a millionaire exodus. So Nevada and Arizona (but especially Nevada because there’s no state income tax there) can breath a sigh of relief that none of those do-gooder progressives will be invading their states, right?
Nevada has gone from a solid red state when we moved there in 1989 to an almost solid blue state and all thanks to the influx of Californians. Not to mention the Hollywood elites who are now opting to spend their film making dollars in Canada because it’s cheaper to film movies there than in the U.S.
We’ll see who stays and who goes if California raises this tax. The facebook co-founder has already unfriended the US and taken off for Singapore to avoid paying capital gains and other taxes on his investment. It ‘ll be interesting to see how this plays out.