California looks to impose new taxes on millionaires

[K Frame]

Gotta make them pay their fair share, after all!

https://www.cnbc.com/2020/07/30/tax-hike-on-california-millionaires-would-create-54percent-tax-rate.html

[dogmush]

It sure is a good thing history has proven that tax rates and tax revenue go up and down linearly.  Can you imagine how embarrassing it would be to raise taxes and find that wealth gets moved around and revenue actually goes down?

[K Frame]

Nah, that will never happen, because all of those California millionaires are just fine with being taxed to hell and back and love living in California too much to ever consider moving...

Just like no business will ever move operations out of California because... GLORIOUS SOCIALIST UTOPIA!

[WLJ]

The Hollywood elite will probably be given a loophole so they'll be all for it because, you know, the rich need to pay their fair share

[Hawkmoon]

Didn't France try this ... and all the millionaires left?

[AmbulanceDriver]

Now this is an interesting twist though:

If the new tax is approved in August, it would be retroactive for this year and apply to income earned since January 2020.

I foresee some *strong* legal challenges if this tax goes into effect.

[RoadKingLarry]

I also see a massive exodus of millionaires from the Golden fleece state.

[Brad Johnson]

I also see a massive exodus of millionaires from the Golden fleece state.

And who will promptly do everything they can to shape their new homes to be just like the place they fled.

Brad

[AZRedhawk44]

I expect many of the SpaceX exec force to change official residences to Brownesville/Boca Chica TX.

[De Selby]

What was the income tax rate like under Eisenhower? Seems like the 50’s were a boom time where technology and income just exploded.

[TommyGunn]

What was the income tax rate like under Eisenhower? Seems like the 50’s were a boom time where technology and income just exploded.

Yet JFK  entered office in January 1961,  lowered taxes and the economy did even better.  Imagine that.

IIRC  the top income tax rate was about 91%   However,  it was also a time of numerous convoluted tax write-offs and shelters that those so afflicted could take advantage of .... so the generic average taxpayer in that bracket only really scratched out a check for roughly 35%  of their supposed "fair share" tax.

[K Frame]

Under Roosevelt, at the end of WW II, the tax rate was as high as 94%.

It started falling in subsequent years, but was still pretty high in the 1950s, and in fact in 1951 went back up from the high 80s into the 90s.

The income tax rate is what helped turn Ronald Reagan from being a New Deal Democrat to a Republican.

The tax policy center has a list of historic highs

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjvxJ3R_vnqAhXEhHIEHfStDmwQFjAMegQIBhAB&url=https%3A%2F%2Fwww.taxpolicycenter.org%2Fsites%2Fdefault%2Ffiles%2Flegacy%2Ftaxfacts%2Fcontent%2FPDF%2Ftoprate_historical.pdf&usg=AOvVaw3Mn3Qoa4XEN-C5fhfS39id

[Hawkmoon]

And who will promptly do everything they can to shape their new homes to be just like the place they fled.

Quoted for truth.

[Jim147]

I wonder if California has asked California or New York how this,works out in the end.