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Because of asset seizures, I am starting my new company outside California

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Re: Because of asset seizures, I am starting my new company outside California

#11

Post by samwillis »

joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%!

Oh and we currently have a 50% rate but it's about to drop to 45% for income come over £150,000.

Re: Because of asset seizures, I am starting my new company outside California

#12

Post by tadfisher »

samwillis wrote: post #11
joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%! Oh and we currently have a 50% rate but it's about to drop to 45% for income come over £150,000.

We have federal marginal income tax rates as well.

Re: Because of asset seizures, I am starting my new company outside California

#13

Post by mentat »

muzz wrote: post #6
joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

Income != Assets His bio describes him as a "failed investment banker", so perhaps his lack of that kind of basic knowledge should come as no surprise. This Proposition was passed back in November, yet somehow it appears to be news to the author.

The issue is that it's retroactive. That income had become an asset to suddenly be considered as income again. The retroactive nature of the proposition was not in any of the official summary documentation for the election either.

Re: Because of asset seizures, I am starting my new company outside California

#15

Post by Glyptodon »

stock_toaster wrote: post #5
pravda wrote: post #2

...in New York? I would consider that a jump from the fire into the frying pan.

Seems an odd choice if just for the taxes. I would think Nevada or Colorado or even Oregon (my home state) would be better alternatives tax-wise, and yet still retain the "Startup community scene" to some extent. I could see moving to New York if it were a finance or media company (sounds like it is a media company), so maybe that has a larger impact on location than tax alone.

Phoenix is starting to pick up some of it, too, I think. But yeah, really, New York?

Re: Because of asset seizures, I am starting my new company outside California

#16

Post by dsr_ »

samwillis wrote: post #11
joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%! Oh and we currently have a 50% rate but it's about to drop to 45% for income come over £150,000.

These are the state income tax rates; Federal income taxes are on top of that. The bottom Federal rate is effectively zero, and tops out at 35% for marginal income over about $380K.

Re: Because of asset seizures, I am starting my new company outside California

#17

Post by wooster »

joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

The big one that likely upset him (and which he more specifically calls out in a previous piece) was the elimination of the qualified small business exclusion:

  Not only did the state's Franchise Tax Board (FTB)
  eliminate a tax break on capital gains for small 
  business owners and investors, it announced the tax 
  would be reinstated retroactively. This means those 
  who benefitted from the break can expect a bill for 
  unpaid taxes, plus interest, stretching all the way 
  back to 2008.
http://tech.fortune.cnn.com/2013/02/21/the-california-tax-th...

Re: Because of asset seizures, I am starting my new company outside California

#18

Post by bhb916 »

muzz wrote: post #6
joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

Income != Assets His bio describes him as a "failed investment banker", so perhaps his lack of that kind of basic knowledge should come as no surprise. This Proposition was passed back in November, yet somehow it appears to be news to the author.

He is referring to it as an "asset seizure" because he already paid incomes taxes on this amount. Prop 30 was passed late in the year, after most of this income was made. If we classify this as a tax, then all true asset seizures could be reclassified as such if we just apply tax rules to earlier and earlier tax years.

Remember, the constitutional prohibition against "Ex Post Facto" laws doesn't apply here.

Re: Because of asset seizures, I am starting my new company outside California

#19

Post by samwillis »

dsr_ wrote: post #16
samwillis wrote: post #11

Earlier quoted context omitted.

Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%! Oh and we currently have a 50% rate but it's about to drop to 45% for income come over £150,000.

These are the state income tax rates; Federal income taxes are on top of that. The bottom Federal rate is effectively zero, and tops out at 35% for marginal income over about $380K.

Ok thanks, that makes more sense. Still much lower than us though. I suppose that's what we get for having the NHS.

Re: Because of asset seizures, I am starting my new company outside California

#20

Post by jack-r-abbit »

joshAg wrote: post #4

here is the relevant info i could find about the taxes/asset seizure the author is referring to: "Proposition 30 creates three new upper income tax brackets for the next seven years. For example, folks with $250,000 to $300,000 a year in income will pay 10.3%, up from 9.3%. The new top income tax rate–for folks with income of $1 million-plus–will be 13.3%, up from a current top rate of 10.3%. That eclipses New Yorker…

> Still, all Californians will be chipping in: Proposition 30 also raises the state sales tax from 7.25% to 7.5% for four years, starting Jan. 1, 2013.

But not chipping in equally or proportionally. Only the very top tier have an increased income tax, so they will be paying more from the start. And the simple reasoning that "people with more money tend to spend more money" says that the top tier will also be chipping in more of that sales tax.

Prop 30 was a piece of shit. I personally voted for the competing Prop that would have given a equally proportionate income tax bump across the board. Unlike many, I wasn't selfish and voted to give myself a tax bump rather than just give it to the top tier. Shame that the selfish mob won out and 30 passed.

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