Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

California To Hit Startup Founders with Big Retroactive Tax Bills

xconomy.com

Post reply on HN
Print view View original

81–90 of 318 posts

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

#81

Post by elliptic »

Osiris wrote: post #55
untog wrote: post #33

Earlier quoted context omitted.

Don't come to New York, then. If your access to rifles is more important than the tax codes your startup may or may not face, stay where you are.

To other child post: FUD. What the heck does NY have to do with the federal constitution? It takes 3/4 of states to pass a new amendment, so it's not like NY can do it on it's own. The second amendment limits the federal government from passing certain kinds of laws.

Completely false. Like much of the rest of Bill of Rights, the second amendment has been incorporated (see Chicago vs McDonald), and thus held to apply to the states.

It slightly irritates me when people say this, because usually those people have no problem accepting that other amendments that they hold to be more important (e.g, the 1st) apply to the states.

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

#82

Post by enraged_camel »

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…

High taxes aren't an issue, since healthcare is free and there is a very strong social safety net.

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

#83

Post by not_that_noob »

we unfortunately don't have enough votes to influence their thinking on this. this is sleazy but not out of character for california. you can try shaming them with some media exposure (which is what you are embarking on) and hope it kinda works. good luck.

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

#84

Post by bdunbar »

Osiris wrote: post #55
untog wrote: post #33

Earlier quoted context omitted.

Don't come to New York, then. If your access to rifles is more important than the tax codes your startup may or may not face, stay where you are.

To other child post: FUD. What the heck does NY have to do with the federal constitution? It takes 3/4 of states to pass a new amendment, so it's not like NY can do it on it's own. The second amendment limits the federal government from passing certain kinds of laws.

I believe the poster is referring to Cuomo's press conference this morning (1/15) where he announced his intention to enact a ban on rifles, sales of rifles, ammunition, restrict magazine capacity and so on.

http://open.nysenate.gov/legislation/bill/S2230-2013

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

#85

Post by ryguytilidie »

I guess the way I see it is this. I imagine most startups don't have much profit, so therefore they won't pay much in taxes. If you are making a lot of profit and paying a bit more in taxes, it seems like the system is working. If these people are selling millions of dollars in stock options and complaining about having to pay more taxes on them, I have a hard time having sympathy. I'd love for my biggest problem to be figuring out how much more in taxes I owe on all the millions of dollars I made.

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

#86

Post by redm »

I'm not sure I would recommend Texas either. Use tax means you pay annual taxes on everything you own, plus sales tax on any affiliate deals; franchise tax will hit you hard even if your not making a dime because it's based on 'net worth' and not on profit.

It's a tough place to be.

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

#87

Post by reybango »

iheartc wrote: post #46
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.

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

And no state income tax.

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

#88

Post by run4yourlives »

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…

I live in Vancouver. Have you ever actually lived in Canada?

>Vancouver, BC has barely any tech industry

http://en.wikipedia.org/wiki/Economy_of_Vancouver

Let's just ignore the fact that MS has a development centre in Vancouver, specifically because its easier to hire game developers here. Halo is being written here.

> British Columbia has one of the highest tax rate in Canada.

You may want to tell that to BC: http://www.bcjobsplan.ca/?facts=b-c-lowest-personal-taxes

>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.

Your friend is either an idiot, or hasn't lived here in a long, long time.

http://www.knv.com/cms-assets/documents/40364-256654.bcperso...

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

How's your health care? How much does that cost your employer?

There are many great things about WA. I love it. However if the state is going to retroactively go after companies, BC starts to become very, very attractive. We are not that different, tax wise. We obviously need to stay competitive.

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

#89

Post by DannyBee »

Aloisius wrote: post #68
DannyBee wrote: post #13

We can't effectively manage a budget, give us more money!

Actually, California's budget is balanced and it expects a surplus in two years. http://www.nytimes.com/2013/01/11/us/california-balances-its...

Only after doing things such as threatening to cut 300 million from education unless folks raised taxes (retroactively as well).

If your method of balancing the budget is always asking for more money, you haven't really balanced the budget.

What are you going to do in a few years when those tax hikes expire, and you suddenly lose the same amount of revenue? I look forward to a few years when we begin to hear the claim in that we need to make the temporary hikes permanent, because we are running out of money again.

(This is, btw, fairly similar as to how the federal income tax was created. It was originally temporary)

As for the surplus claims: Of course the guy who supported the ballot initiative is going to say it's going to run a surplus.

However, even the ballot initiative booklet mentioned the surplus claims are possibly false, as the kind of revenue they are depending on is very transient and hard to predict.

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

#90

Post by PoliticsJunkie »

rayiner wrote: post #54
king_magic wrote: post #45

Earlier quoted context omitted.

No way is it $5,495/month in NY for $100k. $4,829 at best for $100k. With the expiration of the payroll tax, your take-home for NYC for over 100k is roughly 58% for the year. But then again there might be some tax magic I'm missing.

Yeah, I can't figure out how to use the internet. In NYC, including city tax, it's $5,203 versus $5,289 in California. If you live in NJ or Westchester, it's $5,495. That being said you can live in New York City and get much better public services than say living in Silicon Valley. $100 per month for a MTA pass versus $100 a month for car insurance alone, etc.

$100 for a MTA pass for a privilege of riding in a metro train with communists and all types of other trash?

Thanks, I stick to my car. Isolated from you criminals, communists, etc. yankees.

Post reply on HN