Wealthy in California may pay nation's highest taxes
Bush-era rates set to expire with coming New Year
High-income Californians would pay the nation's highest marginal income tax rates with the passage of Proposition 30 last month. If President Barack Obama and Congress fail to make a deal to avoid the so-called "fiscal cliff," the Bush era tax cuts on high-income taxpayers would expire with the arrival of 2013. Rates will revert to their previous levels.
High-income Californians would pay the nation's highest marginal income tax rates with the passage of Proposition 30 last month.
The scholars noted that Proposition 30 added three percentage points to the marginal state income tax rate for California's highest-income taxpayers, which brought it to 13.3 percent, raising California over other high-tax jurisdictions to a marginal rate of 51.9 percent, slightly higher than New York City's level.
Hawaii was the only other place with a calculated rate above 50 percent.
Lawmakers are currently engaged in a battle over how to solve the "fiscal cliff" issue by the end of 2012. If nothing is done, a series of tax cuts expire for all Americans and taxes will go up. Republicans favor a continuation of the tax cuts for everyone, including the wealthy. President Obama and Democrats have thrown their support behind continuing the tax cuts for individuals who make $200,000 or less and couples who make $250,000 or less, but they oppose continuing the cuts for wealthier Americans.
Republicans also want to cut more spending than Obama. The poll indicates that Americans are reluctant to cut Social Security, Medicare and defense spending, which may lend some weight to Democrats' arguments against major cuts. However, a recent poll also found that more Americans favor cutting government services to reduce deficits than raising taxes, a Republican-held view that the GOP may be able to use in their favor as both parties try to reach an agreement on how to avoid "going over the cliff."
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Wealthy, California, Bush-era tax cut, tax breaks, Obama
Rate This Article
Leave a Comment
More Politics & Policy News
- Attorney General approved warrant for Fox reporter's emails
- 'Journalism has been criminalized' Juan Williams declares
- Documents reveal US drone policy is scandalously indiscriminate
- Special Report from the Virginia Republican Nominating Convention: A Time To Choose - Life
- Lois Learner pleads the 5th. Was she the crook behind it or was she following orders from higher up?
- Sick of deception! Democrat threatens IRS with appointment of special prosecutor
- FOURTH OBAMA SCANDAL: Did HHS Secretary Kathleen Sebelius solicit funds for nonprofit group?
- Carney still insists nobody told Obama about IRS investigation
- State Department insider warns more whistle-blowers to come on Benghazi scandal
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?