Proposed California Initiative Targets Wealthy for Revenue

9:06 pm Tax Planning

california state flag e1323378318620 Proposed California Initiative Targets Wealthy for RevenueWhile Congress is still debating the issue of taxing wealthy Americans, some states are considering the “1 percent” as a source of new revenues – including California.

Earlier this week, California Gov. Jerry Brown filed a ballot initiative with the attorney general asking voters to increase taxes on the wealthy.  The initiative would raised taxes by one percent on those earning more than $250,000 annually, 1.5 percent on those earning between $300,000 and $500,000 per year, and two percent on those making more than $500,000 a year.

For joint filers, the income thresholds would double, meaning that couples would need to earn over $500,000 to experience the threshold tax increase, and over $1 million to get hit with the largest increase of two percent.

Gov. Brown also added a half-cent increase in the state sales tax to the measure, which would be paid by all Californians.

The initiative will go on the ballot next November.  If passed, the income tax increase would be retroactive to the beginning of 2012, and the state tax increase would go into effect in 2013.  Both would be phased out in January of 201

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