The Personal Income Tax is expected to generate in the range of ONE HUNDRED BILLION USD in 2021 according to the California Budget. Now, in California, our high earners are taxed 9.3 percent plus an additional 1 percent on income over $1 Million USD. Problem is, most of your high-income earners are not W-2 Employees and are generally considered “Self Employed”, and because of this the taxable income number is based on their “Adjusted Gross” number, not the actual “Gross Income”, allowing our higher earners to “write-off” a large chunk of their actual income to “business expenses”. Now, if everyone is honest, this works. If we have an “effective system of checks and balances” this works. Sorry, not everyone is, and we do not……. For our Self Employed:
Put gas in, business deduction.
Go out to eat, business deduction.
Home Office, business deduction.
Cell Phone, business deduction.
Car Lease Payments, business deduction.
The list goes on…… and on….. and on.
So, what happens in the Great State of California if we eliminate the State Income Tax.
1. We close the loop fast on the number of families living in poverty in California.
2. Housing becomes more affordable right out of the gate for our lower income families.
3. People will begin flocking to live in the Great State of California to take advantage of our No State Income Taxes, bring with them money to spend in the Great State of California. More Home Sales, more businesses opening which equals more jobs, which again helps our struggling families.
4. Spending, spending by all classes increases, spending makes the engine of the economy perrrrr.
Problem is, if we eliminate the State Income Tax, how do we recoup that One Hundred Billion Dollars? This money goes to fund our schools, paying for infrastructure, and civil services. Do not worry, my Blog is a “progressive blog” (not in the political sense, my blog builds over time) and as my “Plans move along”, you will see in the next few posts I will address this and work towards a budget surplus.
NOTE: This blog is only for conservational ideas and I have ‘zero point zero’ percent interest in running for any political offices.
So, plan one (If I was the Governor of California), eliminate the State Personal Income Tax.
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