Where Do Californians Stand On Taxes?

Where Do Californians Stand On Taxes?

Where Do Californians Stand On Taxes?

California’s high ranking on the tax meter is well documented. The state is among the highest in the nation for both income taxes and business taxes. It ranks high in several other tax categories as well, including sales tax, property tax and even the gas tax. The Golden State also has a long history of taxing wealthy individuals at a much higher rate than those in the lower or middle class. People in general don’t care for paying additional taxes, especially when they feel like they are paying enough already. So where do residents of California really sit when it comes to the taxes they pay? A recent study, by UC Berkeley’s Institute of Governmental Studies, answers that question to some degree.

Gas Tax

Let’s start with the gas tax. According to the survey, when it comes to gas taxes, most residents do not want to see a proposed bill that would increase the state’s already high gas tax even more. Despite the fact that California reportedly needs road repairs that would cost nearly $60 billion, residents still oppose a proposed 12 cents a gallon gas tax increase by a 63 to 37 percent margin. Residents showed an even stronger opposition to higher vehicle registration fees, opposing it 74 to 26 percent.

Sales Tax

When it comes to sales tax, respondents showed a mixed bag of feelings. Many who push for tax reforms in the state have called for California to reduce the sales tax rate, but at the same time give it further reach by including services as well as goods. However, nearly 60 percent of all respondents do not approve of this idea. Even the majority of democrats, 53 percent, who were not as strongly opposed as republicans and independents, voted against that particular method of sales tax reform.

Wealthy Tax

While it is not known as the “wealthy tax,” Proposition 30 was definitely designed to take aim at the rich. When the state budget was facing a serious crunch several years ago, Proposition 30 was implemented in 2012 to get California back on track. The temporary proposition increased the state sales tax and income taxes on the wealthy. Those with higher incomes have been paying more ever since. However, those increased sales taxes are supposed to expire at the end of 2016 while the higher income tax rate is scheduled to expire in 2018. Many are now calling for Proposition 30 to be extended.

Keep it Alive or Let it Expire?

So how do survey respondents feel about that? Overwhelmingly, 65 percent said they would support extending those higher tax rates. However, there was a catch in the survey. Half of the respondents were only asked if they would support an extension. The second half were asked the same question but they were told that even if Proposition 30 did expire, forecasters believe that state revenue will most likely still increase thanks to solid economic growth. Given that additional information, respondents had a much different view. By the slimmest of margins, 51-49 percent, residents barely supported the idea of extending Prop. 30. Not surprisingly, residents who earn $150,000 or more per year (which are those who would be paying the higher income tax) largely opposed the extension, while the majority of all other income brackets supported the extension.

—————————————————————————————————————————————————————————————————————

We hope you found this article about “Where Do Californians Stand On Taxes?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

The Future of Sustainability: Tony Raynor, CEO of Sustainable Green Team

The Future of Sustainability: Tony Raynor, CEO of Sustainable Green Team Watch Tony’s recent Interview with Alan Olsen: https://youtu.be/KAahQYB_LWQ Tony Raynor is the Founder, President and CEO of The Sustainable Green Team, a company working to bring sustainability to our world. Sustainable Green Team, Ltd., through its subsidiaries, provides storm/disaster recovery services. It offers tree,…

Tony Raynor

The Man that Grows Water in Dirt, Tony Raynor CEO of Sustainable Green Team

Transcript: Alan Olsen Hello, this is Alan Olsen and welcome to American Dreams. I’m here today with Tony Raynor. Tony, welcome to today’s show. Tony Raynor Alan, it’s wonderful to be here. Thank you, Alan Olsen Tony, you’ve had the most amazing journey in your life, when there has been, will fill with a lot…

Taking Over the Family Business with Pamela Kan, President of Bishop-Wisecarver Corporation

Taking Over the Family Business with Pamela Kan, President of Bishop-Wisecarver Corporation See Pamela’s recent interview with Alan Olsen on Youtube: https://youtu.be/-KvsbCcfmaM Pamela Kan has been the President of Bishop-Wisecarver Corporation since 1999. She is a highly respected leader in the manufacturing and engineering industry, and has been instrumental in growing the company into the…

Igniting Others With Kary Oberbrunner

Igniting Others With Kary Oberbrunner See Kary’s interview with Alan Olsen on Youtube: https://youtu.be/IfPrM7b9LII Do you struggle through life feeling lost? Do you want to find your dream job or perform better at your current day job? Are you looking for a new secret weapon for mastering life? Kary Oberbrunner is a Wall Street Journal…