California, Kimberly Dvorak reminded us last month, “has the third highest state income tax in the nation and the 9.55 percent tax bracket starts at $46,349 for people filing as individuals.” You read that right, the highest tax bracket kicks in for individuals earning under $50,000. No wonder 3,000 high wage earners are leaving the state every week, meaning less less revenue for our state’s coffers.
That brings me to R.S. McCain’s reference to a past California governor who kept the Golden State glistening:
As Ronald Reagan used to say, “No poor man ever gave me a job.” Whether as employers, consumers or investors, “the rich” are essential to economic growth and a policy of punishing wealth will therefore have the effect of discouraging investment and employment.
The demonization of the rich is, however, so essential to the liberal worldview that no matter how often their confiscatory schemes produce bad results, they never learn.
The new governor coming to Sacramento may have promised not to raise taxes without voter approval, but his campaign demonized his opponent for wanting to cut taxes. He has no plan to reduce the growth-stifling tax structure of our state, a structure which punishes wealth, discouraging productive residents of the (once-)Golden State from staying here.
No wonder they choose residence and create opportunities in neighboring jurisdictions.