Skip to main content

View Diary: Oh Noes!!--Phil Mickelson (R-Golf) Might Retire, Citing (Incorrectly) Tax Hikes on Top 1%--Boo-hoo. (302 comments)

Comment Preferences

  •  runfastandwin - it's a small number (0+ / 0-)

    but larger than .00001 percent. The challenge for California is that the top 1% pay in the area of 20%+ of all the state revenue. The income of the top 1% is variable, in years when the economy is good it is very high and in down cycles it can drop by 50% or more. Stock options play a big part in this and all of the stock option gains are taxed as ordinary income. The state got in real financial trouble because when we had the dot com boom cash rolled in because of stock options and the legislature baked that new level of income into the budget, rather than viewing it as a short term windfall.

    Now, a 50% decline when you earn $ 2 million is still plenty but the state has $133,000 less income just at a time when government has higher costs due to the declining economy.  That's one of the reasons we have such a high sales tax and that the 9.3% state rate applies to all income over $50,000, it's an attempt to have more predictable state tax revenue .

    "let's talk about that"

    by VClib on Mon Jan 21, 2013 at 10:06:16 AM PST

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site