1 Percent of Households Will Pay 80 Percent of California’s Income Taxes


This is a problem that can only be solved with higher taxes, union ownership of government and illegal immigration. And by solved, I mean empty the state of everyone who earns a living without working for the government and speaks English which will turn California into a place that Greece favorably compares itself to.

California residents already contend with one of the most progressive tax codes in the country. Not only does California have high marginal rates, those high rates kick in at relatively modest income levels. California’s middle class residents earning $48,000 a year, for example, pay a state tax rate of 9.3%. Millionaires in 47 other states don’t even pay that high of a marginal rate. However, one of the state tax code’s greatest flaws is it’s over-reliance on upper income households and the revenue volatility it creates, and that is a problem that Prop. 30 would further exacerbate.

As of 2010, the state relied upon 144,000 households, 1 percent of taxpayers, for 50 percent of total state income tax… [With Proposition 30's passage,] the top 10 percent of earners would be responsible for over 80% of the projected income generated – a fact that Gov. Brown and other advocates of the bill readily acknowledge.

What the left has forgotten is that California and America were built by people who decided that they could do better somewhere else. And by “do better”, I don’t mean pump the well dry of free stuff, but have the freedom to build things, start families and live their lives.

People will go on doing that. There will be just less and less of them doing it in California. New lands of opportunity keep opening up, even as an old land of opportunity turns into a place that King George III would have said was too repressive and tax-hungry.

When your economy is based on unsustainable spending on the backs of the middle class, then the middle class will shrink through attrition or escape through the moving van. Either way the ObamaPhone economy loses.

  • cynthiacurran

    Believe it on the minorities and since hispanics were the largest group they passed prop 30. In LA County they voted over 60 percent for it, La County caused it to passed and whites in La were more divded than asians and hispanics and blacks. A poll back east had hispanic support low since it was from the inland counties and not La or the Bay area it had it like 53 precent but hispanic support if La is considered was statewhole near 60 percent and hispanics made up 22 percent statewide. Blacks and asians might have supported it higher but as stated the polls seem for whties and hispanic more out of ORange County or Kern County and for asians and blacks out of the Bay area and La. Ronnie Reagan's legalization of 1986 comes to haunt Ca since the legalized, their children and grandchildren voted for prop 30..

  • Mary Sue

    Here comes santa claus here comes santa claus…

    …and if this keeps up one year he'll be showing up with an empty sack.

  • victor

    Who cares, this will keep on going until those idiots who think they will keep on getting free gifts regardless of who pays. Mexico already looks 100% better for business. And, what's wrong with moving to Mexico, since Mexico is emptying its garbage onto U.S. soil, now the environment in Mexico is great for business. The hell with the U.S. ACOUNTRY IS ONLY AS GOOD AS ITS GOVERNMENT AND ITS CITIZENS, and right now the U.S. sucks for business and very very soon it will suck for living.

  • john spielman

    144000, sounds Biblical to me. I wonder whay would happen if the 144000 would leave California?

    • Deep_Space

      I realize you're partially making a joke but the number made me recollect something. The Witnesses claim this is the number of the elect which will sit at the right hand of God or Christ. Quick research but couldn't find if the KJV actually mentions the number (The Witnesses have thier own translation). The idea of an 'elect' is mentioned several times in the KJV.

      Of course 144.000 leaving California for Biblical or other reasons wouldn't have that much of an effect.

      • Mary Sue

        it will if they're the rich and everybody else is making peanuts.

      • JK Stretch

        it would if the 144,000 are all part of the 1% or 10% that pay that tax.

  • MrWritingIII

    As a state they should be allowed to go downhill – problem is they'll eventually need the rest of us to bail them out.

    • Little_Big_Man

      A bad, bad scenario might be that to the extent the rest of the country got fed up with them would have them turning to the Chinese who still (I think) run the Panama Canal through Hutchinson Whampoa.

  • Omgadnowai

    I'm amused at your definition of "economy" as being the "exchange of money".

    That's some serious distortion there; an economy isn't a structure in which money moves, it's the whole of resource excavation, allocation and distribution. Money isn't a resource, it doesn't even matter; in fact, the necessity to cut costs leads to an inherently inefficient resource management. I'm not even sure why you bother looking at "business opportunities" as though they have any relevance.

    • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

      That made no sense.

      The necessity to cut costs drives to better efficiencies as a necessity.

    • Mary Sue

      cool story bro.

    • fly4vino

      Let's try it again………… for the rear of t he classroom.

      Think of the state of California as a tribe living in LaLa land. Every year the out of state tribes and the CA tribe meet to exchange goods. In days past we arrived for the annual pow wow with lots of stuff, airplanes, cars, electronics, medicines, ag products, oil and intellectual items. We raised all the cattle, pigs, lambs and chickens we needed and even traded a few. Pretty much everyone worked.

      The foreign tribes brought us iron and other minerals, lumber, paper, coal, books, coffee, spices, , steel, guns, and lots of cool stuff.

      Then the California tribe began to promise its municipal workers an extra cow, larger home and foreign car. We also decided to give those who did not work a bigger piece of the pie and we would ignore those who claimed not to work but received a full share for their labor plus their welfare benefit. The state became a very popular place to live but had very little to trade with the other tribes.

      At Tribal Council the CA representatives apologized that they brought less than before and explained it was a temporary condition , they would make up the shortage next year. The other tribes believed them and accepted the IOU for 10,000 cows, 30,000 chickens, 500 airplanes . However the following year the CA representatives arrived with even less to trade. Again the other tribes bought the story that the state would reform its ways and do better next year.

      Finally the other tribes realized that the California Tribe would never repay their debt . They accepted the last 3 virgins in Hollywood as a partial payment but demanded the deed to the state for the rest.

  • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

    I was wondering why no one brought up that California is going under one city at a time.
    San Bernardino is a case in point. The collapse will just move up the food chain one step at a time. Cities today, Counties tomorrow….
    http://latimesblogs.latimes.com/lanow/2012/11/ban

  • pollio

    Is this an example of what Obummer meant when he said "its the best revenge"? haha, let them eat cake.

  • cynthia crran

    Well, few Republicans put some of the blame on the God Ronald REagan who was pushed by the Irvine Company to Legalized 3 million and about 2 million of thse illegal immirgants in 1986 lived in California. The white conservatives left because of the flooding of cities with Illegals hispanics in sections of LA, Anaheim and Santa Ana, and parts of San Diego. The aerospace donwturn set even more whites out of state and George H Bush and later Bill Clinton cut the defense budget a lot of Republcians in the LA and Orange and San Diego area moved out of State. THis gave the Bay area more influence since the Republcians from the South left. Then Geroge W Bush support of minority ownership sent thousands of whites from Orange and San Diego to other states since the housing was cheaper remember George W in 2004 won Orange County at 59 while Romeny only at 53, the conservatives left during that time period. Also, Bush won San Diego at 52 while Obama won San Diego at 52 against ROmeny a lot o conservatives left because of the high housing during the bubble period. The aerospace downturn and the housing bubble empty out the Republicans.

  • riverboatbill

    San Andreas will straighten out California's faults.

    • Good One

      I see what you did there…

  • Felix

    The headline is off by an order of magnitude — 10% of the population pays 80%, 1% pays 50%. Read the actual source material.

  • geoplaten

    What do they care, King Barry will just dump them on the rest of us…

  • JWochholz

    I don't even understand this article, and it's not because I'm stupid, it's because this article is poorly written. Just look at the second sentence. I can't fathom what the author is attempting to say. For that matter, the first sentence is poorly constructed as well, or am I being obtuse and the author being facetious? No matter. The author starts with a statistic, 1% pay 80% of taxes without provind me with a verifiable citation to confirm the premise. Later, the author discusses the middle class as bearing the brunt of the tax load. This "fact" is in conflict with the article's headline. Don't get me wrong, I'm against raising taxes, I'm against taxes disguised as fees, and I know we need a State government that will stop spending like a teenager with mommy's credit card. But this article gets a D-.

  • Mary Sue

    Governor Moonbeam is slowly killing the goose that laid the golden egg.

  • http://twitter.com/SoquelCreek @SoquelCreek

    The over-reliance on upper-income tax payers is an ongoing problem for California. Proposition 30 is essentially a complete abuse of the "democratic" initiative process. It asked a simple majority of Californians, who pay a small percentage of the total tax bill, to raise taxes on those who already contribute the most. It makes for good class politics, as shown in the following chart.

    CHART: Income Produced, Income Taxes Paid, Share of General Fund Revenues, Effective Tax Rates of the Bottom 2/3rds and Top 2% of California Income Tax Payers (before Proposition 30) http://twitpic.com/7pf2a8/full

    Proposition 30 is bad public policy and horrible tax policy. It does nothing to address California's real and pressing issues. http://soquelbythecreek.blogspot.com/2012/07/cali

    However, Proposition 30 supporters did succeed in one thing. They made California #1 in state sales tax rates and in state marginal income tax rates–tops in the nation! Now, can we please work on solving the REAL problems? http://soquelbythecreek.blogspot.com/2012/11/weca

  • Richard Rider

    Good article, but you screwed up the headline — it's not the top ONE PERCENT paying 80% of the income tax — it's the top TEN PERCENT (as per the body of the article).

  • http://taxbrackets2013.com/ zagen germaine

    If you had the choice between taking out $40,000.00 of your inherited cash which is part of a larger IRA to pay off debts (but did not have to sell stocks to get that $ & your tax bracket is $15% but perhaps less since I am on SSD & earn less than 14,000.00 a year) or take out a 9% re-fill on a 2nd home, which is being rented for $1000.00 a month that will be sold in 3 years with a contract)- is it as simple as comparing interest rates to decide that a 9% re-fill is a better deal than a 15% deal? ( the 9% is non-negotiable as I can only get a "no doc/no asset loan" at that tax brackets unfortunately)or are there other matters to consider.

  • http://www.RiderBlog.NotLong.com/ Richard Rider

    CA already had the 2nd worst state income tax rate in the nation. Our 9.3% tax bracket started at $48,029 for people filing as individuals. 10.3% starting at $1 million.

    Now our retroactive (to 1/1/2012) “millionaires’ tax” rate is 13.3% – including capital gains. Increased taxes now start at $250K. Our total capital gains tax is 2nd highest in the world.

    CA now has by far the nation’s highest state income tax rate. We are 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 7 states with zero state income tax.

    CA is so bad, we also have the 2nd highest state income tax bracket. AND the 3rd. Plus the 5th and 7th.

    http://taxfoundation.org/sites/taxfoundation.org/files/docs/ff2012.pdf Tables #11 & 13

    and

    http://www.twitpic.com/9g2pka/full

    and

    http://tinyurl.com/CA-2nd-CG

  • bittman

    As of 2010, 10% of the American population paid for 70.6% of the nation’s taxes. I’m sure that Obama and his fellow Progressives would like to get us up to the top 10% paying CA’s 80%.

  • Callawyn

    Death Spiral.

    NY City is in a similar situation: 8 million or so residents, 40,000 of whom pay over 50% of the taxes.

    So, what do they do? Everything in their power to encourage those 40k to move someplace else.

    Only socialists / Democrats could be that stupid.