A California Republican leader warns that a triple tax on
wealthy citizens in The Golden State will lead businesses to flee,
causing the deficit to increase.
Wealthy Californians will see a triple tax increase this year.
The San Diego Union-Tribune notes that
the "fiscal cliff" deal, ObamaCare, and the Proposition 30 tax hike passed by voters in
November will take away an even greater portion of funds from the
state's top earners.
Analysts say the high tax rates and
increased regulations make California a hostile place for
businesses. Mark Vafiades, chair of the Republican Party of
Los Angeles County, agrees.
"With all the burdens that have been put on businesses in the
form of taxes [and] in the form of the healthcare mandate,
businesses are going to be flying out of California," he
The result, he explains, will be an increased unemployment
"Which means revenues to the state from people who are working
[and] paying taxes are going to go down, and it's going to put
California in a worse state of affairs. We're going to have a
larger deficit, and constitutionally, we're a state -- we can't do
that; we can't have a deficit."
By approving Governor Jerry Brown's (D) Prop. 30, state voters
agreed to raise the state sales and income taxes. According to
The Tribune, this means that those who make at least
$300,000 a year will pay roughly $500 more.
Meanwhile, analysts predict Democrats in Sacramento will raise
taxes even higher than voters approved.
An expert in retirement security is adding his two cents to
thoughts on this year's changes with Social Security.