California Could Double Its Taxes To Start Massive New Social Program
http://www.dailywire.com/news/california-could-double-its-taxes-to-start-massive-new-social-program
By Ben Zeisloft
The Daily Wire
January 17, 2022
A new constitutional amendment in California would cause taxes to soar in order to establish a universal, single-payer healthcare system.
According to an analysis from the Tax Foundation, Assembly Constitutional Amendment 11 (ACA 11) — which requires two-thirds of both houses of the state legislature for approval — would introduce “surtaxes atop the current individual income tax structure beginning at $149,509 in income,” a “graduated-rate payroll tax system with the top rate kicking in for employees with more than $49,990 in annual income” and a “gross receipts tax of 2.3 percent, excluding the first $2 million of business income.” ACA 11 would go to the voters for final approval if passed by two-thirds of the Legislature.
The net effect would be to “increase taxes by $12,250 per household, roughly doubling the state’s already high tax collections.” The top marginal rate for wages would rise to 18.05% — significantly higher than the nation’s median top marginal tax rate of 5.3%.
The Tax Foundation says that “the new tax package is intended to raise an additional $163 billion per year, which is more than California raised in total tax revenue any year prior to the pandemic.”
According to the text of ACA 11, the single-payer healthcare system would benefit “every resident of the state” — yet further authorize the legislature “upon an economic analysis determining insufficient amounts to fund these purposes, to increase any or all of these tax rates by a statute passed by majority vote.”
California’s new tax proposal occurs as residents continue to flee the state. Indeed, a new report showed that more than 600,000 people have left New York and California for lower-taxed states with less restrictive COVID-19 policies.
Recently, Tesla CEO Elon Musk — who himself moved from the Golden State to Austin, Texas — blasted California lawmakers over a “bizarre” new solar tax, even creating a website for people to send complaints to Gov. Gavin Newsom (D-CA).
The California Public Utilities Commission’s proposal would “evolve decarbonization incentive efforts to meet the state’s groundbreaking clean energy goals” by establishing a “grid participation charge” of $8 per kilowatt for residential solar panel users. Tesla — which operates Tesla Energy, a firm that sells and installs solar panel systems — is condemning the move.
Musk — currently the world’s richest man — paid $11 billion in taxes last year. Nevertheless, Rep. Pramila Jayapal (D-WA) asserted on social media that he was still failing to contribute his “fair share.”
The comment came after Sen. Elizabeth Warren (D-MA) denounced Musk in December for “freeloading off everyone else” and benefiting from “the rigged tax code.” Musk replied to Warren: “And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year.”
Two high-ranking California Department of Education officials were recently revealed to be living outside of California. One resided in Philadelphia, Pennsylvania, while another resided — like Musk — in Texas, an ironic move given California’s ban on state travel to the Lone Star State. Both officials resigned after their stories made national headlines.
The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted. ~ D.H. Lawrence
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