High taxes be damned, the rich keep moving to California
1–10 of 79 posts
Re: High taxes be damned, the rich keep moving to California
#2This has been posted a few times today...
Re: High taxes be damned, the rich keep moving to California
#3Once tax day has come and the full force of the capped SALT deduction is felt, things may change.
A high-earning couple with $500k in combined income (roughly $45k in state taxes) and a $2m home (roughly $20k in local taxes) will go from a $65k deduction to a $10k deduction.
Re: High taxes be damned, the rich keep moving to California
#4>highest-in-the-nation 13.3% income tax rate
That sounds very comfortable and affordable
Re: High taxes be damned, the rich keep moving to California
#5>highest-in-the-nation 13.3% income tax rate That sounds very comfortable and affordable
Broseph, they're paying 28% via federal as well, and social security and Medicare. If it were only 13% marginal that would be whoop-for-joy low.
Re: High taxes be damned, the rich keep moving to California
#6>highest-in-the-nation 13.3% income tax rate That sounds very comfortable and affordable
That's state tax, which is paid in addition to federal (nationwide) tax. Some states, like Texas, have no state income tax.
Re: High taxes be damned, the rich keep moving to California
#7It's almost as if one of the benefits of being rich is that you don't have to worry about things like how much taxes cost. Yes, this can be interpreted in more than one way.
Re: High taxes be damned, the rich keep moving to California
#8>highest-in-the-nation 13.3% income tax rate That sounds very comfortable and affordable
Broseph, they're paying 28% via federal as well, and social security and Medicare. If it were only 13% marginal that would be whoop-for-joy low.
(In case you're wondering -- you're likely being downvoted for calling the parent 'Broseph' -- it's a bit of a pejorative, which is uncalled for in HN's mostly civil discourse)
Re: High taxes be damned, the rich keep moving to California
#9Once tax day has come and the full force of the capped SALT deduction is felt, things may change. A high-earning couple with $500k in combined income (roughly $45k in state taxes) and a $2m home (roughly $20k in local taxes) will go from a $65k deduction to a $10k deduction.
I'm not a fan of the new tax plan, however that same couple would have been subject to AMT previously. The changes to AMT in the new tax plan offset the loss of deductions.
Re: High taxes be damned, the rich keep moving to California
#10Once tax day has come and the full force of the capped SALT deduction is felt, things may change. A high-earning couple with $500k in combined income (roughly $45k in state taxes) and a $2m home (roughly $20k in local taxes) will go from a $65k deduction to a $10k deduction.
Am half of a high earning couple in a bit above this range in California. Surprisingly, my taxes changed very little this year. In years prior, I always had to pay AMT, in which SALT deductions were already disallowed. The new tax law is basically a wash. I don't pay AMT, just pay higher regular. I didn't check exactly but my effective rate this year may even have gone down a little. Many people in this income range will find similar.