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Note: The combined MARGINAL tax rate has been approximately 50% for a while now (over a decade?) The real headline is "California considers hiking tax rates by
by pj_mukh 6y ago
Note: The combined MARGINAL tax rate has been approximately 50% for a while now (over a decade?)
The real headline is "California considers hiking tax rates by 3% for people earning over $2M in income".
Maybe worth editing the description.
- toast0 6y agoNote that before the 2017 federal tax changes, California incpome tax was deductable at the federal level without a cap (but subject to AMT), so a 40% marginal federal tax and a 13% marginal state tax did not add up to a 53% marginal income tax like it does now.
- throwaway373438 6y agoIt's already 54% for folks with a 7 figure income deriving their income from short term investments (say, stock options). This is almost always the case in tech. 37% federal 13.3% state 3.8% Net Investment Income Tax 54.1% total, before this new tax.
- WilTimSon 6y agoThe headline is pretty manipulative then. Because I saw it and was shocked, imagining this to be a steep increase. Are these large tax rates unusual in other states?
- Gibbon1 6y agoCalifornia has high income tax rates partly because of Prop 13 limits on property tax rates.