We’ve done it. We humble residents of the Golden State now have the highest income tax now of any state in the union clocking in at 10.425 %. We are close on sales tax as well, at close to 10%. For you self-employed California Obamanite high-income earners (leave while you can, it’s your fault), you will soon bask in the glow of combined State + Federal tax levies in excess of 50% of your hard-earned income. Change We Can Believe In! How do I do this math you say? It’s simple, let’s say that you are an entrepreneur toiling over a great business idea for years and your dream has finally come to fruition right in the middle of the Obamanation and the Schwarzenegger/Sacramento madness. You have a great year thanks to your years of struggle and have taxable personal income of say $400,000.00 net of deductions. I am assuming a young, non-coital (gasp!), person full of ambition. Here’s how the tax liability will go –
- Federal income tax = $133,510 (the upcoming Obamanation top rate of 39%)
- CA income tax = $39,781.00 (this amount could be higher, ‘only’ based on the new 10.425% rate, some subject to 10.55%)
- Self-Employment tax = $22,943.00 (this one may go up as the Obamanation has toyed with the idea of lifting the Social Security tax cap set at $106,800 to all income)
Total = $196,234.00
Amazing, it isn’t 50% (yet?)
Anyone think he should pay more? Less?
10 comments:
You only have yourself to blame if you’re toiling over a new idea alone in California (unmarried, etc.). There are valid reasons to have a business in California despite the tax rate (eg: entertainment industry with subsidies and kickbacks to offset the taxes, internet company in the bay area because that’s where the talent is), but I can’t think of one for a self-employed startup, unless you’re filling a local need or something. Do yourself a favor and get out: there are plenty of better states to start and run a business in, and California is doing everything they can to drive away anyone who works for a living (legally anyway).
I, for one, have pretty much decided that I’m going to move out in the next few years; it’s just a matter of figuring out where, and making sure my employment situation will survive the move. I’d probably be gone already if not for inertia, indecisiveness, and an aversion to renting in my destination while I wait for the housing market to overcome the government manipulation attempts. Although, if I figured out how much these are actually costing me in extra tax money being wasted, it might speed the process.
Nick – Pathetic isn’t it? My wife and I found the same mentality of entitlement, and big-gov dysfunction in Hawaii as well, a shame as we were considering moving there for a few years. Nick I would be gone from CA as well if not for a successful business here in SD, and a recent illness in the family. My wife and I love Virginia – low taxes, low crime, decent weather, we visited last year. We are also interested in a little town called in North Carolina on the East coast, it’s an area called Monkey Junction (near Wilmington). We will NOT start a family in CA and are resolved to leave as well. States that you are interested in?
California once promised riches and dreams to many, but now has become the dimming beacon on the libera’s downhill slide. It’s really sad to sit back and watch. I just can’t imagine having that much income taken from me at the point of the government’s gun. There is no reason to tax a person for half of their efforts to strengthen the economy through their labor.
Clay – my grandparents came here in the 30’s to Redlands in fact, on dreams of running a orange orchard. San Bernardino and Redlands were a middle class destination for many, places to raise families and make a good living. San Bernardino is now a crime-ridden hell-hole. The exodus of the middle class from here continues and the influx of poor, non tax-paying immigrants to take their place
Pasadena’s Tea Party was today. It was great!
Pasadane conservative – Bravo my friend, keep fighting the good fight, we need more troops here in CA
$196,234 worth of “patriotism” down the socialist sinkhole. Those democrtas sure are inspiring.
I think a revolution is in order.
DaBlade – 50% taxation is the inspiration of the Democ rats, remember too, that my example may be worse if the Obamanation lifts the SSI cap!
fuzzy’s dad – I think one is too
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