Please ensure Javascript is enabled for purposes of website accessibility
California's Rich Will Feel New $12 Billion Tax Bite: Walters
GV-Wire-1
By gvwire
Published 7 years ago on
April 23, 2018

Share

Dan Walters of CALmatters points out in his April 23 column that wealthy Californians can expect to pay $12 billion in additional federal taxes annually as a result of the tax-reform package passed by Congress and signed by President Trump this year.

Like many, Walters wonders what impact the added weight will have on the top 1% of Californians already shouldering heavy tax burdens.

Wealthy To Exit California?

Will they flee to places without state income taxes such as Nevada, Texas and Florida? Will they bear and grin it? And,  if they do bolt in large numbers, how will that affect California’s government finances?

Analyzes Walters:

“The new federal system’s most controversial aspect is a $10,000 limitation on deductibility of state and local taxes, dubbed SALT, and those in the upper income brackets will feel the pinch on their itemized deductions while those in lower brackets will benefit by more generous standard deductions.

“A new study by the California Franchise Tax Board – the state’s primary tax collection agency – reveals that the SALT deduction limit will cost Californians an estimated $12 billion a year in higher payments to Uncle Sam beginning this year. Three-fourths or $9 billion will fall on Californians with incomes of $1 million or more, the FTB calculates, with the other $3 billion coming from those with taxable incomes of $100,000 to $999,999.”

California Tax Policy Is Soak the Rich

How important are the wealthy to financing California government?

Consider these two stats cited by Walters. The state relies on income taxes for 70 percent of its General Fund. In addition, he writes, “half of those income taxes are paid by the top 1 percent of taxpayers, about 150,000 returns in a state of nearly 40 million people.”

Of course, liberal California leaders are critical of Trump and the GOP-led Congress for limiting state income tax deductions. Walters paints them as hypocrites. After all, financing California government is largely based on soaking the rich.

You can read Walters’ “Will $12 billion tax bite drive rich from California?” at this link.

 

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

This Is Who Trump Has Targeted for Retribution

DON'T MISS

Golden Charter Academy Scholars Dig Deep for a Greener Fresno

DON'T MISS

US Colleges Say International Student Visas Are Being Revoked

DON'T MISS

Trump Says US Will Talk to Iran About Ending Tehran’s Nuclear Weapons Program

DON'T MISS

Tracy Chapman Wants to Speak for Herself

DON'T MISS

Despite Councilmember’s Plea, No Beer Selling for This Fresno Store

DON'T MISS

Mega Millions Tickets Rise to $5 Each. Will That Mean More Giant Jackpots?

DON'T MISS

Hurtado’s Bill Seeks More Funds to Protect South Valley From Floods

DON'T MISS

Signs of a More Buyer-Friendly Housing Market Emerge for Spring

DON'T MISS

CA’s Homeless Shelters Aren’t for Everyone. That Doesn’t Mean They Don’t Work

UP NEXT

US Colleges Say International Student Visas Are Being Revoked

UP NEXT

Trump Says US Will Talk to Iran About Ending Tehran’s Nuclear Weapons Program

UP NEXT

Tracy Chapman Wants to Speak for Herself

UP NEXT

Despite Councilmember’s Plea, No Beer Selling for This Fresno Store

UP NEXT

Mega Millions Tickets Rise to $5 Each. Will That Mean More Giant Jackpots?

UP NEXT

Hurtado’s Bill Seeks More Funds to Protect South Valley From Floods

UP NEXT

Signs of a More Buyer-Friendly Housing Market Emerge for Spring

UP NEXT

CA’s Homeless Shelters Aren’t for Everyone. That Doesn’t Mean They Don’t Work

UP NEXT

Landmark $2.8B NCAA Settlement Hearing Could Transform College Sports

UP NEXT

Is Your CA Career College or Training Program Legit? Check Its License or Violations

Trump Says US Will Talk to Iran About Ending Tehran’s Nuclear Weapons Program

7 hours ago

Tracy Chapman Wants to Speak for Herself

8 hours ago

Despite Councilmember’s Plea, No Beer Selling for This Fresno Store

8 hours ago

Mega Millions Tickets Rise to $5 Each. Will That Mean More Giant Jackpots?

9 hours ago

Hurtado’s Bill Seeks More Funds to Protect South Valley From Floods

11 hours ago

Signs of a More Buyer-Friendly Housing Market Emerge for Spring

11 hours ago

CA’s Homeless Shelters Aren’t for Everyone. That Doesn’t Mean They Don’t Work

12 hours ago

Landmark $2.8B NCAA Settlement Hearing Could Transform College Sports

13 hours ago

Is Your CA Career College or Training Program Legit? Check Its License or Violations

13 hours ago

Alex Ovechkin Breaks Wayne Gretzky’s NHL Career Goals Record by Scoring His 895th

13 hours ago

This Is Who Trump Has Targeted for Retribution

Since returning to office, President Donald Trump’s campaign to exact revenge against his foes has turned out to be far more expansive, crea...

6 hours ago

Trump Signs Executive Order
6 hours ago

This Is Who Trump Has Targeted for Retribution

7 hours ago

Golden Charter Academy Scholars Dig Deep for a Greener Fresno

Photo of people at Harvard
7 hours ago

US Colleges Say International Student Visas Are Being Revoked

Trump and Netanyahu in the West Wing, April 7, 2025
7 hours ago

Trump Says US Will Talk to Iran About Ending Tehran’s Nuclear Weapons Program

8 hours ago

Tracy Chapman Wants to Speak for Herself

8 hours ago

Despite Councilmember’s Plea, No Beer Selling for This Fresno Store

Mega Millions Price Increase
9 hours ago

Mega Millions Tickets Rise to $5 Each. Will That Mean More Giant Jackpots?

11 hours ago

Hurtado’s Bill Seeks More Funds to Protect South Valley From Floods

Help continue the work that gets you the news that matters most.

Search

Send this to a friend