Wednesday, May 30, 2012

Are California taxes fair?


http://www.sfbg.com/politics/2012/05/30/are-california-taxes-fair

Let's start with an assumption that I think most sane (non-libertarian, non-right-wing-GOP) people agree on: A tax system ought to be based on ability to pay, ought to avoid as much as possible special-interest breaks and should avoid the appearance and the reality of unfairness.

So as Jerry Brown tries to convince voters to approve his fall tax measure that's part income taxes on the rich and part sales taxes on everyone, how does the state add up? The California Budget Project, which is one of my favorite organizations ever, has a couple of reports out that shed some light on why half of Brown's plan -- taxes on the millionaires -- makes sense, and the other half of it doesn't.

You can read the two reports here. Let's start with who pays the taxes:

Measured as a share of family income, California's lowest-income families pay the most in taxes.

Yes, many individual rich people pay more in terms of gross dollars -- but when they're done and the taxes are turned over to the government, the poor have very little left, and the rich have plenty. In fact, even with higher income tax rates, the wealthiest Californians only paid 7.4 percent of their incomes on state and local taxes. They poorest paid 10.2 percent.


**Opinion**

Simply put, the current proposal to add an insignificant tax increase for the wealthy to help balance the CA budget is a joke. The tax increase for the wealthy should be way higher.

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