California Millionaire Tax

California Democrats proposed to increase individual tax rates.  Assembly Bill 1253, if passed, would subject high income earners to three new surcharges effective January 1, 2020.  Under this provision, 1% surcharge would be applied to individuals with over $1 million taxable income; 3% for income over 2 million and 3.5% for taxable income over $5 million.  This would effectively increase the top marginal rate for high income earners to 16.8%.

Republicans worry that California is already one of the highest taxing states, and such increase may encourage business owners to pack up and leave California for a lower-tax state, taking jobs along with them.

For additional detail, please click the link below.

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1253