At $117.4 billion, last year California collected 80% more taxes than the next highest taxed state, New York. New York "only" collected a total of $65.4 billion from its citizens. (Source 2008 tax collections)
On Saturday, August 1, 2009, Bob Brinker said:
California is obviously a totally dysfunctional government from a fiscal standpoint.... It's a joke. They are going to have to redo their constitution or they're not going to get past it on a long-term basis.... That's how screwed up it is."Despite having the highest tax collections in the US, Californians will pay higher taxes this year even if they make less money!
Not only is the rate for California's top bracket going up 2.7% from 9.3% to 9.55% but California is lowering the income level at which this takes effect by 1.31% from $47,055 to "only" $46,439.
Federal Tax Rates for 2009
Note CA tax rates are indexed to inflation. We have 1.3% CPI deflation year-over-year so the brackets were lowered.)
This is not the only gain in our tax rates. Besides rising the income tax rate by 0.25%, California went to the well for more money by:
- Slashing the dependent credit by more than two-thirds.
- Nearly doubling the vehicle license fee to 1.15% of a car's value.
- Increasing the California sales tax by 1%. In some counties like Los Angeles, the sales tax rate is 9.75%!!!
The new van did not qualify for the "Cash For Clunkers" program despite my old van only getting 11 MPG and the first tank of gasoline saw my MPG improve over 30% to 15 MPG!
Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 128% (over a double!) vs. the S&P500 DOWN 0.4% vs. NASDAQ down 7.8% (All through 8/27