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California To Hit Startup Founders with Big Retroactive Tax Bills

xconomy.com

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Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#71

Post by kjackson2012 »

run4yourlives wrote: post #53
preinheimer wrote: post #22

As a business owner this crap terrifies me. Washington State was looking at changing their tax code retroactively to get more money from Microsoft, luckily level heads (and I might presume, extensive lobbying) prevailed. I can't plan today for what yesterday's laws will be tomorrow.

That will work until one of the Microsofts of the world decides it's more cost effective to move everyone 2 hours drive north to Vancouver than it is to pay this giant bill. The US is quickly going to learn that there is a rather modern country to the north that isn't in the same financial distress as Europe or most states are. I'd imagine given that, this line of thinking would probably play itself out pdq.

You don't know much about Vancouver if you think this is a realistic possibility.

Vancouver, BC has barely any tech industry (a few software companies like Business Objects, and EA Sports are up there, but nothing meaningful), and the taxes are high. British Columbia has one of the highest tax rate in Canada. One of my Canadian friends told me that the 50% marginal tax rate started around $65k, although I haven't double-checked this for accuracy.

You can't compete between Washington State, with no state income tax, and Vancouver, BC.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#72

Post by flagnog »

jstalin wrote: post #63

Come to (western) Michigan. We have new corporate tax reforms that dramatically reduced liabilities (6% rate for C-Corps, flow-through taxation for LLCs and S-Corps, personal income tax rate of 4.3%), we have a 6% sales tax, low property taxes, very cheap housing (compared to much of the nation), well-educated workforce, and liberal gun laws (for the guy who wouldn't move to NY). Our 4.3% income tax rate is still low…

And Detroit... oh, wait - Western Michigan. Should be a new state.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#73

Post by untog »

king_magic wrote: post #57
cullenking wrote: post #49

Earlier quoted context omitted.

I think it might be something more about the fact that New York's interpretation of the 2nd amendment differs so greatly from mine that I am fearful for what they might do in regards to other constitutional amendments. As a side note, I cannot move to most cities in Colorado because I happen to have two dogs who are banned by their breed. The point is, there is way more to the conversation than just taxes alone.

Seriously, I've been throw into the gulags and tortured at least 5 times while living in NY. It's awful - just awful. Don't come here, whatever you do. Don't say I didn't warn you!

I've been throw into the gulags and tortured at least 5 times while living in NY

Seriously, stop going to bars around Times Square. You should know better by now.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#74

Post by jstalin »

flagnog wrote: post #72
jstalin wrote: post #63

Come to (western) Michigan. We have new corporate tax reforms that dramatically reduced liabilities (6% rate for C-Corps, flow-through taxation for LLCs and S-Corps, personal income tax rate of 4.3%), we have a 6% sales tax, low property taxes, very cheap housing (compared to much of the nation), well-educated workforce, and liberal gun laws (for the guy who wouldn't move to NY). Our 4.3% income tax rate is still low…

And Detroit... oh, wait - Western Michigan. Should be a new state.

Indeed. Avoid eastern Michigan. Western Michigan is like a totally different state.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#75

Post by sliverstorm »

run4yourlives wrote: post #62
jiggy2011 wrote: post #58

Earlier quoted context omitted.

But I thought their financials would be in ruin, what with giving out all of that free healthcare?

Don't get me wrong, we will eventually get to the spot Europe is in if we don't make changes to our health care services of one type or another. We have however shown a remarkable ability to vote for people that tell us we can't afford things we can't afford. We took drastic austerity measures in the 90's and we actually voted for it - twice. I'm not too worried about our finances, once people get the numbers in fron…

A cohort of reasonable voters? You just keep racking up reasons to move there...

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#76

Post by bjcy »

wallawe wrote: post #60
iheartc wrote: post #46

Earlier quoted context omitted.

Come to Florida, it may be a red state but they stay out of your business and costs less.

It's a red state and thus they stay out of your business and it costs less.

Texas isn't too shabby either. Plus, fewer natural disasters means less downtime.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#77

Post by Vivtek »

run4yourlives wrote: post #62
jiggy2011 wrote: post #58

Earlier quoted context omitted.

But I thought their financials would be in ruin, what with giving out all of that free healthcare?

Don't get me wrong, we will eventually get to the spot Europe is in if we don't make changes to our health care services of one type or another. We have however shown a remarkable ability to vote for people that tell us we can't afford things we can't afford. We took drastic austerity measures in the 90's and we actually voted for it - twice. I'm not too worried about our finances, once people get the numbers in fron…

Europe's healthcare has nothing at all to do with "the spot they're in". The spot is due exclusively to short-sighted compromises in the structure of the Eurozone - the idea was to get into cheap markets and it paid off great for Germany, but now they have to pay the bill the voters are balking.

But no, the Canadian healthcare system is not going to pull you under.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#78

Post by flagnog »

kyrra wrote: post #30
rayiner wrote: post #19

Come to New York! We're rolling in so much finance money we don't need to hit up small businesses.

Your state's gun laws prevent me from ever living there.

and you can't legally buy a Big Gulp. Seriously, and city/county/state govt that would do that, you can't trust them with your livelihood.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#79

Post by pc86 »

rayiner wrote: post #38
preinheimer wrote: post #22

As a business owner this crap terrifies me. Washington State was looking at changing their tax code retroactively to get more money from Microsoft, luckily level heads (and I might presume, extensive lobbying) prevailed. I can't plan today for what yesterday's laws will be tomorrow.

Unfortunately, I think you'll see more of these problems as states get crushed under their existing debt and new expenditures from pension obligations, etc. See: http://www.usgovernmentspending.com/compare_state_spending_2...

Perhaps defined-benefit retirement plans should not be in the public sector since they haven't been in the vast majority of the private sector for quite some time.

Re: California To Hit Startup Founders with Big Retroactive Tax Bills

#80

Post by jmtulloss »

kjackson2012 wrote: post #71
run4yourlives wrote: post #53

Earlier quoted context omitted.

That will work until one of the Microsofts of the world decides it's more cost effective to move everyone 2 hours drive north to Vancouver than it is to pay this giant bill. The US is quickly going to learn that there is a rather modern country to the north that isn't in the same financial distress as Europe or most states are. I'd imagine given that, this line of thinking would probably play itself out pdq.

You don't know much about Vancouver if you think this is a realistic possibility. Vancouver, BC has barely any tech industry (a few software companies like Business Objects, and EA Sports are up there, but nothing meaningful), and the taxes are high. British Columbia has one of the highest tax rate in Canada. One of my Canadian friends told me that the 50% marginal tax rate started around $65k, although I haven't dou…

According to this, it's pretty comparable to the US if you live in California. Higher than the US if you live in Washington under their current tax laws.

http://2vancouver.com/en/articles/vancouver-bc-taxes-on-inco...

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