TX, AZ Likely To Benefit as CA Boosts Taxes

Businesses are already fleeing California to neighboring states


A slim majority of Californians did something strange on Election Day. They voted to make themselves worse off while boosting the economies of Texas, Arizona, Nevada and other states.

They did this by passing Proposition 30, the brainchild of Democratic Governor Jerry Brown. The ballot initiative raises the sales tax from 7.25 percent to 7.5 percent and imposes higher income-tax rates on many Californians. The top marginal tax rate goes from the current 10.3 percent to 13.3 percent, one of the highest in the nation. The higher income taxes will lapse in seven years—but are retroactive to Jan. 1, 2012!

In Proposition 30, Brown entreated Californians to join him in a soak-the-rich scheme, sold as a panacea for the state's financially stressed school systems. However, Proposition 30 will hit almost all Californians. Both rich and poor families will pay higher sales taxes. One recent study found that millionaires don't move from California to avoid income taxes—but Proposition 30's threshold starts at $250,000, imposing new burdens on thousands of already heavily taxed families.

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  1. This was so disappointing. How much more do people want? We have the highest income and sales taxes in the nation, and that’s not enough?

    1. Republicans basically didn’t show up in CA on tuesday. The turnout in OC was less than 15% at 5pm.

      1. People gotta work to pay the taxes, man.

  2. Moonbeam claims his tax increase is “for the CHILDRUNZ!” when it’s nothing more than funding the retirement of Moonbeam’s fave union. And CA voters are dumb enough to give him a win.
    I live in CA, so it can’t be something in the water; I drink it. WIH can it be that voters decide to hand their wallets over to the teachers union for the benies?
    Has it gotten to the point that the union voters simply constitute the majority and there is no longer any limit to the beggaring?

    1. Turnout was very low in CA, especially by republicans. It’s a consequence of being irrelevant to the outcome of the presidential race and having a crappy candidate that no one liked.

  3. Welcome to Texas guys!

    1. ummm no. Not really. Stay there. Or go to Colorado. I hear it’s beautiful there.

  4. Surprised that they put it as low as $250k — this will start hitting all those worthless public union double-dipping pensioners.

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