The Highest Income Earners Pay all State Income Taxes

[Krugminator2]

The next time the stock market corrects 20-50%, the loss of capital gains revenue is going to really show how bad of shape blue states are in fiscally. It is interesting reading about Democratic lawmakers offer special tax breaks to the highest income earners so that they won't leave their states.


https://www.nytimes.com/2016/05/01/b...d.html?mcubz=1

. The state’s wealthiest resident had reportedly “shifted his personal and business domicile to another state,” Frank W. Haines III If the news were true, New Jersey would lose so much in tax revenue that “we may be facing an unusual degree of income tax forecast risk,” Mr. Haines said.

New Jersey won’t say exactly how much Mr. Tepper paid in taxes. But according to Institutional Investor’s Alpha, he earned more than $6 billion from 2012 to 2015. Tax experts say his move to Florida could cost New Jersey — which has a top tax rate of 8.97 percent — hundreds of millions of dollars in lost payments.

Mr. Tepper, 58, declined to comment on his move. He does have family — his mother and sister — who live in Florida. But several New Jersey lawmakers cited his relocation as proof that the state’s tax rates, up from 6.37 percent in 1996, are chasing away the rich. Florida has no personal income tax.

California had to account for a “Facebook effect” in 2012 and 2013 after that company’s 2012 initial public offering of stock. The offering generated more than $1 billion in revenue — much of that from the chief executive, Mark Zuckerberg, and a small group of company shareholders.

California has the highest poverty rate in the nation when you account for cost of living. They have huge structural problems but are worried about global warming and allowing the homeless to defecate in the streets. http://www.investors.com/news/econom...pay-for-it-all

This year, Democratic Gov. Jerry Brown, who has led the state for 16 of the last 43 years, unveiled a 2018 budget calling for $179.5 billion in spending, a 53% increase since just 2010. And, in a surprise, Brown said he expects a $1.6 billion deficit, in large part because tax revenues are lower than expected.

The problem is so bad that debt-rating agencies have warned the state about its overdependence on its wealthiest citizens, in particular the volatile tech industry, for its tax base. Because of this, Moody's Investors Service last year rated California as one of two states "least prepared" to weather a recession. (The other was fiscal basket-case Illinois.)

Worse, actual spending in California next year is expected to be closer to $284.5 billion, thanks mostly to $105 billion in federal spending in the state. Now home to one-third of all U.S. welfare recipients, millions of illegal immigrants, and a fast-growing Medicaid population, California depends on federal money for 37% of all its spending.

Yet California's top marginal income tax rate of 13.3% remains the highest in the nation. Last year, it ranked dead last in Chief Executive magazine's "Best and Worst States for Business" survey for the 12th year in a row. And the state got an "F" in Thumbtack.com's "2016 Small Business Friendliness Survey."

[oyarde]

Last time it did drop 50 percent . If it were to happen again , ( I see no reason it may not ) , it will be worse than last time I believe .

[Madison320]

We need to "ask" the "most fortunate" to pay their "fair share".

Translated:

We're going to force at gunpoint, the hardest working and most productive, to fork over almost the entire tax burden at much higher rates than the average citizen pays.



Can you imagine if we had "special" laws for other minorities like we do for the most productive? What if white men had a 15% tax rate but black women had to pay 40%? How would that go over?

[Krugminator2]

We need to "ask" the "most fortunate" to pay their "fair share".

Translated:

We're going to force at gunpoint, the hardest working and most productive, to fork over almost the entire tax burden at much higher rates than the average citizen pays.



Can you imagine if we had "special" laws for other minorities like we do for the most productive? What if white men had a 15% tax rate but black women had to pay 40%? How would that go over?

It's amusing to me that if one person leaves a state it blows a hole in the state's budget. And yet, they will continue to talk about fair share.

California has a small group of super rich people in Silicon Valley that pay a huge percentage of the taxes. If you get a slow down in that industry and the stock market drops far enough where they won't collect capital gains taxes for a few years, the state is screwed. The economy is doing well right now and are still have huge problems. The stock market has boomed and their pensions are underfunded by infinity.

[r3volution 3.0]

It's amusing to me that if one person leaves a state it blows a hole in the state's budget. And yet, they will continue to talk about fair share.

California has a small group of super rich people in Silicon Valley that pay a huge percentage of the taxes. If you get a slow down in that industry and the stock market drops far enough where they won't collect capital gains taxes for a few years, the state is screwed. The economy is doing well right now and are still have huge problems. The stock market has boomed and their pensions are underfunded by infinity.

I think they know that, in the end, Uncle Printing Press will bail them out.

[Madison320]

I think they know that, in the end, Uncle Printing Press will bail them out.

I agree. Printing money is the path of least resistance. They'll keep printing until the dollar fails. The best case scenario is that the dollar doesn't collapse too fast and the federal reserve has time to tighten. That'll put us in a depression but it's better than hyperinflation.

[r3volution 3.0]

I agree. Printing money is the path of least resistance. They'll keep printing until the dollar fails. The best case scenario is that the dollar doesn't collapse too fast and the federal reserve has time to tighten. That'll put us in a depression but it's better than hyperinflation.

One would hope they'd try to tighten, but I'm afraid the political pressure to keep the inflation-financed free$#@! flowing will be too great.

*For the record, I'm not predicting hyperinflation any time soon, but it will happen eventually if spending trends don't change.

[Madison320]

One would hope they'd try to tighten, but I'm afraid the political pressure to keep the inflation-financed free$#@! flowing will be too great.

*For the record, I'm not predicting hyperinflation any time soon, but it will happen eventually if spending trends don't change.

I agree. At some point the political pressure to stop inflation will outweigh the pressure to give out free stuff. Like I said before hopefully the inflation will increase slowly. My fear is that we get some sort of crazy hyper-hyperinflation due to the fact that it's so easy to unload your dollars electronically. For example if the dollar started dropping large holders of dollars, like the Chinese, might try to unload their dollars and buy assets like the stock market. I'm not predicting it but it makes me wonder if it's possible.