Tax Trauma

In 2012, California raised taxes by three percentage points on individuals with income above $500,000/year and couples with incomes greater than $1 million/year. The latest CA tax data shows that due to a combination of emigration of these wealthy households and behavioral changes in how income is recognized among the very high income, those earning over $4 million/year, just 55% of the additional expected tax revenue materialized. Hello Elizabeth Warren.