Breitbart reports California Democrats are planning to raise the state’s highest-in-the-nation tax rates even higher this month, hiking the top rate in the state to 16.8%.
The San Francisco Chronicle reported Friday:
A bill introduced in the Legislature this week would raise California’s top personal income tax rate — already the highest in the nation at 13.3% — to 16.8%, retroactively to Jan. 1.
To take effect this year, the bill would need to be approved by two-thirds of the Legislature before they adjourn Aug. 31. The Senate Governance and Finance committee will hear testimony on the bill Monday morning, but won’t vote on it. It would need additional action to move forward.
AB1253 would add a surcharge of 1% to incomes (joint or single) between roughly $1 million and $2 million, 3% on income between $2 million and $5 million, and 3.5% on income greater than $5 million, bringing the top rate to 16.8%. (The tax would actually take effect at somewhat higher incomes because of inflation adjustments.)
The funds to be raised would not be earmarked for any specific purpose, but sponsor State Sen. David Chiu (D-San Francisco) said that the money could be used for “affordable housing, the homeless, child care and education,” the Chronicle reported.
The state raised taxes on the wealthy to 13.3% in Proposition 30, which was sold by then-Gov. Jerry Brown to voters as being “temporary,” and necessary for education funding. Democrats extended those “temporary” taxes to 2030 with a ballot referendum, Proposition 55.