In California, the ability to deduct state and local taxes saved federal taxpayers $101 billion in 2014, the latest year for which there are data, according to the nonpartisan Tax Foundation.Blue America: are you ready to pay more?
California’s state income tax is very high and progressive, with rates ranging from 1% to 13.3%. The state with the second-highest rate, 9.9%, is Oregon. But unlike California, Oregon doesn’t also impose a state sales tax.
Californians are projected to fork over roughly $83 billion in state income taxes this year, supplying 69% of the general fund. Imagine the howls if we could no longer deduct that hefty levy on our federal returns.
This came to mind last week as I glanced at the latest report of who pays what in California state income tax. We really like socking the rich.
The Franchise Tax Board reported that for 2015, the latest year analyzed, the top 1% paid nearly half — 47.6% — of the total state income tax. These people earned 24% of the taxable income. They represented only about 161,000 tax returns out of a total 16.1 million.
On the lower end, the bottom 60% supplied just 2.2% of the tax take while earning 16.8% of the income.
California is a Bernie Sanders dream. He ran for president preaching that the wealthiest 1% should pay much more. They provided 37.8% of the federal tax in 2013, significantly less than one-percenters sent to Sacramento.
Monday, April 24, 2017
L.A. Times Reporter Warns California:It's time for California to stop leaning on the rich and take up state tax reform
The L.A. Times reports:
