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California is the highest-taxed state


Wednesday, September 3, 2008 6:33 AM PDT

Our politicians are economic idiots! Don't they ever learn from history?

California is bucking to be the highest-taxed jurisdiction in the United States. To close our budget gap, our "clueless" legislators want to put a $9.7 billion tax hike on business and the rich. These idiots say they want new jobs, but they hamstring business with regulations and confiscatory taxes. Two very large California employers announced they are leaving the state — the AAA Call Center is closing its call centers, and Toyota is canceling plans to build its new Prius hybrid at its San Francisco Bay plant, moving to a more progressive and pro-business state — Mississippi.

Most people don't realize it, but Census Bureau data shows that from 1996-2005, 1.3 million more Americans left than came to California. Those leaving the state are disproportionately those with higher incomes — the ones Democrats want to tax more.

We hear "the Messiah" prattle on about tax fairness. Just look at The California Tax Board's Annual report for 2006. The top 1 percent of taxpayers paid 47.5 percent of the personal income tax; the top 5 percent paid 67.9 percent of all personal tax. The bottom 60 percent of taxpayers paid just 3 percent of total tax, while the top 20 percent paid 88.7 percent of the total personal income tax. This is fairness?

The IRS has come out with its tax data for 2006. The top 1 percent of taxpayers, those who earn above $388,806, paid 40 percent of all income taxes. The top 10 percent, those earning more than $108,904, paid 71 percent of the taxes. Obama says he is going to cut taxes for those at the bottom, but those in the bottom half only paid a record low of 2.9 percent of all income taxes, while the top 50 percent paid 97.1 percent. So we really have half the country supporting the other half.

The most industrialized states (New York, Ohio, Michigan, Illinois, California) are the highest tax states and strangle businesses with regulations and taxes. Is it any wonder Florida, Texas, Arizona and Nevada (states with no income tax) get so many fugitives from high income tax states?

Phyllis Roche
Lodi

Reader Feedback

Acampo_Mom wrote on Sep 3, 2008 11:40 PM:

" lodisafeway:
My 85 year old grandmother received the rebate. She gets social security, so of course there are no "income" taxes taken out of that. But what a lot of people forget are all the sales taxes we pay on goods. I know those are state taxes...but still taxes. And don't forget all the elderly that did get the rebate, have paid THOUSANDS of dollars in taxes over their lifetimes. The $300 is only a drop in the bucket.

I was glad to get my "stimulus" check...but thought it a stupid plan. How did it stimulate the economy?

Out of curiosity, I just figured out that we pay approx (me and hubby) $605 in gasoline sales taxes annually. Tax UPON tax. lovely. "

Election Year wrote on Sep 3, 2008 10:37 PM:

" And when did the socialists become a major party in the US? I agree that BO is one. What, Cogito, is our alternative? I just watched Sarah Palin speak at the RNC, and all she could do was demean the Dems with her sarcastic and "holier than thou" attitude. She has apparently been trained very well over the past 6 days. Where is the substance of the platform? Is this going to be an election year of 4th graders saying, "Nah-nah-nah-nah-nah!?" We've got some serious issues to consider and all we've seen so far is garbage about who has more experience. Let's get serious about what needs to be done, whether it be the Republicans or the Democrats! "

Cogito wrote on Sep 3, 2008 10:26 PM:

" Leonard, what I was saying is that ANY bill passed by our government in a McCain presidency would have to be approved by major players of BOTH parties. B.O.s will only have to go through one, the Socialists. "

Election Year wrote on Sep 3, 2008 10:23 PM:

" t jefferson: What you don't know is that I have a Masters in Economics and have worked in Finance and Accounting for 35 years. You are just flat out fabricating your so-called "informtion." "

dogs4you wrote on Sep 3, 2008 2:12 PM:

" While everyone is somewhat in the ball park about what Ms. Roche said concerning large employers leaving California,allot due to all the regulations, taxes, and workmans compensation. From what she said, the AAA call center is leaving the state, and if correct Toyota is canceling plans to build its Prius hybrid and moving to a more progressive and pro-business state ahhhh like Mississippi. There are also several other high end car manufactures moving to the southern states to get away from Detroit and the UAW`ers union. Last but not least, lets not forget that grand `ol company that kept Oakdale on the map, that chocolate company that is now making kisses in Mexico. It`s all about turning a profit for the least amount of money invested. Good-bye USofA, Hello India. "

t jefferson wrote on Sep 3, 2008 12:04 PM:

" so the next time someone says we need more money, think about that. The government spend $20K per year on you and what do you get for it. Broken schools, illegal immigration, roads with cracks, and the constant badgering that if we could just raise your taxes we can solve the problem. There are no solutions in Sacramento or Washington, there are only more people who want to take your money. If you really want to pay more there is a line on the W-4 where you can give as much as you want, me I'm done..... "

t jefferson wrote on Sep 3, 2008 12:01 PM:

" Election year, my statements are factual. They come from income tax rates paid by indivduals. As I stated the marginal tax rate for each individual dollar earned is ~60%, sorry you can't see that. Numerous econmic studies have shown the employee bears the entire burden of the SS tax even though it is split between employee and employer. Ask any self employeed person if they get to pay half. As far as the cops and firefighter, it also applies to teachers and all other govt employees, they don't pay SS (thier benefit is much higher for less cost) and get to deduct any contribution made to a pension plan. Benefits private employees don't get. I'm sorry you don't know more about taxes and what you actually pay (it's higher than I stated, left out all the "hidden" taxes), but that is what I expect from the people in rural towns. Bet you are not even aware of how much money the gov't spends every year. Let me give you a hint, it is about 6 trillion dollars per year which is about $20K for every person in this country. "

lodisafeway wrote on Sep 3, 2008 11:51 AM:

" First, I'm not a freeloader. Second, where did I suggest that the poor should be required to pay taxes?

Of course I did find it amazing a number of months back when the announcement was made that only 'taxpayers' would be receiving the stimulus rebate, those who did not pay any taxes believed that they too should have received a check as well.

But guess what?!? Those who paid no taxes actually received a 'rebate.' And many of those same recipients had also received much more than had been withheld through the Earned Income Tax Credit when they first filed their tax returns! Anyone care to explain how that made any sense?

Any refund or rebate from the government should always be based upon how much each person pays in during the tax-year in question. To refund or rebate someone $200.00 when they only paid in $100.00 isn't just bad economics; it's stupidity. Name me one business that could get away with such a thing. There, they call those things 'bonuses,' and normally they're earned in some tangible way by the recipient. "

Election Year wrote on Sep 3, 2008 11:35 AM:

" t jefferson: Your numbers are completely made up. Cops and fire fighters "don't pay the taxes a normal person pays?" Do you mean that they don't have to pay SS tax because they contribute to their own pension funds, just as teachers and other government employees do? The percentages you list are those that are "required" by State and Federal law as payroll deductions on "supplemental income" such as bonuses and commissions(and your SS number is wrong because that includes the employer contribution). They do not represent an individual's final tax rate which is based on AGI less exemptions, deductions and credits.

Stop contributing to false and alarmist information! "

Election Year wrote on Sep 3, 2008 11:18 AM:

" Nice to see that Ms. Roche has deviated from her usual JBS propaganda rants about the conspiracy to form a single government that will rule the world.

I'm a little confused about her % statistics - they just don't seem to add up. Using her numbers, those who make less than 108,904 (90% of the taxpayers) are paying only 29% of the taxes. What "bottom half" is she refering to that paid "a record low of 2.9% of all income taxes?" Half of what? I searched the IRS website and was unable to find any 2006 statistics. Someone please give me a link!

And wtf: I tried the c-span link to the Ron Paul speech, but my computer refused to go there. Must be a conspiracy on the part of Dell (or Comcast) to keep me uninformed. "

Leonard wrote on Sep 3, 2008 11:04 AM:

" Cogito wrote on Sep 3, 2008 8:44 AM:

" Leonard, any bill, doing anything to anybody, will have to first be approved by the Democrat led House, and Democrat led Senate before it can become law. Any tax increases will have to be endorsed by the Democrats before McCain could sign them


Your point?

This argument could be used to support any McCain proposal, no matter how outrageous.

McCain wants to introduce a plan to serve eat the children of illegal immigrants but that's OK because it would have to be ratified by Congress?

That does not seem to be a potent defense of this proposed record tax increase. "

wtf wrote on Sep 3, 2008 9:22 AM:

" Taxes are relative to income; comparing the taxes of the "rich" to the taxes of the "poor" is like comparing oranges to celery....you can't. Ron Paul's speech at the Rally for the Republic yesterday was dynamite. His solution?

***Everyone*** rich and poor, should be able to keep the fruits of their labor. Before the usual suspects start in with their yada, yada, yada...he also addressed how this could be accomplished.

Watch and learn:

http://www.c-span.org/search.aspx?For=rally+for+the+republic "

Cogito wrote on Sep 3, 2008 8:44 AM:

" Leonard, any bill, doing anything to anybody, will have to first be approved by the Democrat led House, and Democrat led Senate before it can become law. Any tax increases will have to be endorsed by the Democrats before McCain could sign them. "

taNDC wrote on Sep 3, 2008 8:37 AM:

" lodisafeway, why should the poor pay taxes to support freeloaders like you? "

Cogito wrote on Sep 3, 2008 8:26 AM:

" The writer mentions how B.O. says he will cut taxes on the bottom, and they pay no taxes. Well, that's called packaging a lie in what sounds like a promise. And all his sheeple will praise him bleating "OBA-A-A-MA" "OBA-A-A-MA". "

t jefferson wrote on Sep 3, 2008 8:00 AM:

" jeff,

The median income was ~44K as of 2006, probably around ~50K now due to inflation. (CA was 54K as of 2006). But income was not the question, taxes were. Look at the marginal tax rate for someone make 80K per year, your average cop or firefighter. (Though they don't pay the taxes a normal person pays). The marginal tax rate at this income level is over 50% in CA. At this income level every addtional dollar earned gets taxes at the following rates. 28% FED, 9.3% state, 13.4% SS, 1.45 Medicare, Sales tax of ~8% on purchases(Valid becuse of negative savings rate) for a total tax rate of 60%. So tell me do you think you are getting value for your 60% tax rate? Over 30% of the people in this country pay no taxes and get money from the govt. The next 30% pay very minimal taxes. This country has reached the point de Tocqueville spoke about and there is no going back. "

lodisafeway wrote on Sep 3, 2008 7:54 AM:

" It would also be interesting to learn just how much (or little) those designated as 'poor' pay in taxes in this country. I think 'zero' shouldn't shock too many people.

What people 'earn' however is an altogether different matter. I have always held that rarely is anyone actually paid what they are worth. That is, there are too many who accomplish little (if anything) and draw healthy salaries while others work their tails off and take home nowhere near what they should. How to resolve this disparity is a subject for another day; here the subject of taxation is the issue.

Those who actually believe it to be 'American' to take from those who have much and hand it over to those who have little seek to do nothing more than undermine those things that have helped to make the United States so successful - self-reliance, education, perseverance and hard work. "

jeff wrote on Sep 3, 2008 7:20 AM:

" Mrs. Roche, you included the income level of the top 1% in the country (above $388k). It would be interesting to see the income level of the bottom 50% (below $??). My guess is it would shock many people as to how much (little?) half of the people earn in this country. "

Leonard wrote on Sep 3, 2008 6:12 AM:

" It seems to me that some of what Ms. Roach is, albeit unwittingly, complaining about is the growing gap between the rich and the poor in this country.

Tax data from 2005 shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980.

The problem is not taxes but the ever increasing gulf between the working poor and the ultra rich. Tax increases on the working poor like John Mccain's plan to tax them for their employers contributions to health care, will only widen this gap. "

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