

Ask HN: California highest possible income tax rate at 13.3%. - codegeek

I saw on news that the highest possible income tax rate in California is now 13.3%. That is huge and highest in the country. How will this impact startups/businesses specifically silicon valley ?
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philiphodgen
As an international tax lawyer based in California, I can tell you the
obvious: it is chasing people and capital away from the State of California.

This apparently is not obvious to our fine friends in Sacramento. Or the
people who vote for them.

They seem to have a static model of human behavior: humans do not react to
economic stimuli under their model, so if taxes are raised the humans glumly
accept their lot and pay more.

Except of course when it is time to hand out government cookies. Then the
model of expected human behavior is active. We expect humans to respond to
handouts and subsidies. (I'm looking directly at the junk that our local and
State governments do to entice the movie industry to shoot on location in
California).

You get less of what you tax. If you don't like rich people, tax them. They
will go away. (They will not be less rich). If you don't like corporations,
tax them. They, their capital, and their jobs will go away.

You get more of what you reward. Insert your favorite examples here.

"We're California! Everyone wants/has to be here!" This works until it
doesn't. Then it craters amazingly fast. Kind of like RIMM.

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darkxanthos
It's one reason I left for Washington many years ago. It's great getting 10%
more money in an area with lower Cost of Living.

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erlanger555
Yeah, right... By the way, how is all that rain and gloomy weather working out
for you?

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tnorthcutt
_Yeah, right..._

Do you not believe that darkxanthos moved to Washington?

Do you not believe that darkxanthos moved to Washington (partially) because of
the tax situation in California?

Do you not believe that darkxanthos enjoys getting keeping 10% more of their
money in an area with lower cost of living?

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FellowTraveler
I'm getting the hell out of California. Flying to Austin next weekend with the
GF to go house hunting.

