Thursday, February 28, 2019

California State Budget Relies on Taxing Richest One Percent

California's 40 million residents depend on less than 1 percent of the state's taxpayers to pay nearly half of the state income tax, which for California's highest tier of earners tops out at the nation's highest rate of 13.3 percent.

If even a few thousand of the state's 1 percent flee to nearby no-tax states such as Nevada or Texas, California could face a devastating shortfall in annual income.

During the 2011-16 California drought, politicians and experts claimed that global warming had permanently altered the climate, and that snow and rain would become increasingly rare in California.

For years, high-speed rail has drained the state budget of transportation funds that might have easily updated nightmarish stretches of the Central Valley's Highway 99, or ensured that the nearby ossified Amtrak line became a modern two-track line.

California politicians vie with each other to prove their open-borders bona fides in an effort to appeal to the estimated 27 percent of Californians who were not born in the United States.

About a third of the California budget goes to the state's Medicare program, Medi-Cal.

Spiraling entitlements, unwieldy pension costs, money wasted on high-speed rail, inadequate water storage and delivery, and lax immigration policies were formerly tolerable only because about 150,000 Californians paid huge but federally deductible state income taxes.

https://www.nationalreview.com/2019/02/california-state-taxes-richest-one-percent/

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