Rider: I’m a lifetime tax fighter. Yet I support the proposed CA 16.8% income tax on the rich.

I like Richard Rider—a true libertarian who understands government is not our friend and the larger the government the more unfriendly government becomes.  So it was a shock to see his energy in supporting a massive tax increase on the wealthy.  His reasoning is simple—at some point even the radical Left wealthy will leave the State.

“But this is La La Land —  where the rich OVERWHELMING support progressives.  Let those rich folks pay for the California Workers’ Paradise that they are voting for.  For those few wealthy individuals  who are NOT progressives, their option is obvious — flee California ASAP.  I’m confident that the majority of the fleeing CA rich will be the two-faced progressives who (like everyone else) feel that they better know how to spend their own money than does the government.

The premise of those politicians pushing this bill is that the rich will pay any amount of tax to live and work here. Their anticipated $6.8 billion increase in annual tax revenue is predicated on the supposition that no rich people will leave the Golden State.  I think that the rich will still VACATION in California for several months (less than six full months) of the year, but their tax residence will often relocate to a much lower income tax state.”

As they leave they also take their investment dollars with them—meaning fewer jobs in California.  So the tax increase will cause fewer jobs, less revenue to government in California.  Rider believes the tax increase would collapse the State.  Sadly Newsom and his buddies may love money but they are economic illiterates—or they do not care.

I’m a lifetime tax fighter. Yet I support the proposed CA 16.8% income tax on the rich.

by Richard Rider, Richard Rider Rants,  8/2/20   

My credentials as a California tax fighter are well established.  I joined the battle in 1978, supporting Prop 13. As an unpaid volunteer, I’ve been at it ever since.  My efforts have saved Californians over 20 BILLION dollars in taxes. If doubtful, check out my bio.

Yet I now strongly support the proposed California state legislature’s massive, RETROACTIVE state income tax increase on the wealthy — AB-1253.  It’s rapidly picking up steam in the state legislature.  

In California, it will be a tax that in essence targets the liberal rich.  Karma.  Hence my support.

If passed by the current Democrat super-majorities in both state houses and signed by Governor Newsom before the end of August, this tax will apply to income received by rich folks SINCE THE FIRST OF THE YEAR.  

Retroactive tax increases are the way we roll in Taxifornia.  Don’t ask me how that is legal — they got away with it in their massive retroactive 2012 tax increase — and it wasn’t approved by (clueless) California voters until November of that year.

Currently California ALREADY has the highest state income tax rate in the nation — 13.3% on income above $1,000,000.  CA is 21% higher than 2nd place Hawaii, and a heck of a lot higher than all the rest. 

The new rates will levy an additional 1% levy on adjusted gross income starting at $1 million. That rate would increase to 3% starting at $2 million and go to 3.5% on incomes above $5 million.  That would make our top income tax rate 16.8% for the rich.

But that’s not all.  CA taxes capital gains (CG) as ordinary income.  Currently our CA combined federal and state long term CG tax is the second highest in the world! Assuming Biden wins and the Democrats control the U.S. senate, the federal capital gains rate is expected to rise 80% or more, making our combined California CG rate over 50% — leaving socialist Denmark far behind.

If I lived in TX (and all but the most liberal states), I would oppose the tax. There the rich are not all limousine liberals.  

But this is La La Land —  where the rich OVERWHELMING support progressives.  Let those rich folks pay for the California Workers’ Paradise that they are voting for.  For those few wealthy individuals  who are NOT progressives, their option is obvious — flee California ASAP.  I’m confident that the majority of the fleeing CA rich will be the two-faced progressives who (like everyone else) feel that they better know how to spend their own money than does the government.

The premise of those politicians pushing this bill is that the rich will pay any amount of tax to live and work here. Their anticipated $6.8 billion increase in annual tax revenue is predicated on the supposition that no rich people will leave the Golden State.  I think that the rich will still VACATION in California for several months (less than six full months) of the year, but their tax residence will often relocate to a much lower income tax state.

But maybe the Democrat politicians are right!  Indeed, if the tax works as progressives envision, Sacramento should impose another “soak the rich” tax increase next year.  I’m “all in” with that plan!

Let’s find out if the wealthy progressives are really as dumb as they appear.  Let’s eat the rich.  

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. … and a fine idea soaking the rich is, Mr. Rider…
    The way I see it, anyone dumb enough to keep money and, or other valuable assets in California deserves to be government-robbed. But yeah, eventually even the two-faced Libs get a belly full and pull out…
    My only problem is the LeftMob’s richer members think they know better how people should live than the people do and they bring their arrogance with them to their new tax home states…
    Mr Rider, please, tell the rich of California to stay home — send their money elsewhere, but keep their crazy Progressive nonsense out there on the Left Coast.

  2. Really??? says

    jColes speaks to the truth.

    I am watching the privileged Left set up shop in other states where they don’t have to pay the “soak the rich” taxes and then fund the same Democrats that would bring to that state the same thing.

    Eventually they will run out of states to flee to. Then what? Abandon the United States?

    To too far off. I am seeing a number of these idiots moving accounts to off shore nations.

  3. Here’s my suggestion for California: CalExit. Let CE secede from the U.S. — taking most of the nation’s progressives with them. There are a number of terrific advantages to this idea for conservatives and libertarians.

    Check out my article on this:
    https://riderrants.blogspot.com/2016/12/the-conservative-case-for-progressives.html

Leave a Reply to jColes Cancel reply

*