So rich people go to California to prop the state up and pay for left-wing bull-shit?
Because of the weather?
Sorry. That just doesn't seem likely.
Originally Posted by Munchmasterman
The top income tax rate in California is a whopping 13.3%. The top 1% of all earners pay
more than half of all state income taxes! The top 10% chip in
more than 80% of state income tax revenues. Look it up if you don't believe me.
As a budget strategy, this over-reliance on the rich to pay for everyone else is very risky, since it means revenues drop precipitously each time there is a recession. If the state's GDP shrinks by 5%, its revenues contract by a multiple of that amount and the state budget swings massively into deficit.
Trust me, I've looked at the numbers.
Trumpy's tax reform now limits the deductibility of state taxes on federal tax returns to $10k. As a result, rich people in high-tax states like CA and NY will see their overall tax burdens jump dramatically in 2018.
It's kind of hard to flee to a low-tax state while keeping your lucrative high-tech job if you work in Silicon Valley.