Targeting the Productive in CA
With Prop 30 passing in California, the new top marginal state tax rate goes up to 13.3% (on incomes above $500,000). The tax was sold as primarily affecting the top 1% and is projected to cost those taxpayers an additional $21,883 per year. Overall the new sales and income taxes are supposed to generate $6 billion per year. My guess is that the new taxes will prompt enough people to leave the state and/or prevent newcomers from coming that on balance the state will actually end up with lower tax revenues. (Those who leave not only don't pay the new incremental sales and income taxes, but they also don't contribute what they had been up to now. Moreover the types of people targeted by the income tax are those who start and run businesses, so their employees will also no longer be part of the tax base.)
I sincerely hope this is the case, because I'd like nothing more than that the blood-sucking public union workers and teachers quickly bankrupt the state and thereby provide an object lesson to everyone in the country.
I should also note that my prediction only holds for 2013 and onward; the bastards actually imposed a retroactive tax (which in my opinion should be illegal) for 2012 which no one could have planned for.
Salon has a totally different take on the outcome of the CA election (not specifically prop 30), I think it's worth reading to see the mentality we're up against.