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…
> 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.
that totally depends on what you use to determine proportionality or equality.
A sales tax is equally proportional from the persective that everyone pays the same amount for the same amount of dollars spent, regardless of net worth. It's progressively proportional from the perspective that people who spend more have to pay more taxes, and up until a certain point, people spend all or nearly all their income. It's regressively proportional from the perspective that the rich do not in actuality spend all or even most of their income (ie your simple reasoning fails to be consistent with reality somewhere between $100k/year and $1M/year) and instead park it investments which are not taxed through sales tax (depending on who you talk to, it's because the rich have run out of things to buy, or because they are being responsible with their money).
A flat income tax is equally proportional from the perspective that everyone pays the same percentage of income. A flat income tax is progressively proportional from the perspective that the rich must pay more dollars than the poor since they have benefited more. A flat income tax is regressively proportional from the perspective that the rich have much more discretionary funds than the poor people after taxes, since many expenses, like food, housing, rent, gas, and car maintenance are relatively inelastic until at least the upper-middle end of the quality spectrum.
A graduated income tax is equally proportional from the perspective that equal amounts of income is taxed at the same rate regardless of the total amount of income (eg: two brackets, x 100 := 3.25. An income of 105 has a tax of 100 * .03 + 5 * .05 = 8.05 and not 105 * .05 = 5.25). A graduated income tax is progressively proportional since the people in a higher bracket pay a larger percentage of income than those in a lower bracket. A graduated income tax might be regressively proportional from the perspective that the total amount of tax paid is supposed to be roughly equal to the benefits received from being a part of that society and if the beneefits from being a part of the society are much more progressively proportional than the tax rates and brackets.
> 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.
I agree with you that the tax increases should have been across the board, and I think the increase should be progressively proportionate. But prop 38 did a bunch of things wrong outside of getting the tax increase part right:
"For example, none of it could be used to increase salaries. But the restraints appear to deter some kinds of reform, such as lengthening school days or years, creating regional pools of resources or offering more instruction online. And the measure bars the Legislature from changing any provisions that prove problematic; instead, any amendments would have to be made by the voters.
The biggest shortcoming of Proposition 38, though, is what its supporters consider its main selling point: the fact that it walls off from the general fund most of the money it raises. That's a real problem for the current fiscal year, which will be over before much of the funding would kick in.
. . .
In addition, the singular focus of Proposition 38 on education is misplaced, particularly in light of the deep and damaging cuts the state has been making in programs that aren't already guaranteed half the state's general fund. As much as the schools need help, they aren't the only ones in need of rescue. And walling off another chunk of the state's revenues would only make it harder for lawmakers to address the breadth of the state's needs." [1]
[1]: http://www.latimes.com/news/opinion/endorsements/la-ed-end-p...