Wealthy Californians Keep Paying More in Taxes
The tax numbers are in for the state of California and all signs point to the wealthy paying more than their fair share. With tax day now behind us it’s a key time to take a closer look into the real numbers in the Golden state, especially since income taxes account for more than 65 percent of the state’s revenue in the current budget year.
According to the latest number from the Franchise Tax Board, almost 90 percent of that tax revenue comes from just 20 percent of the taxpayers; those who make $91,000 or more. Taxpayers in that income range are the only taxpayers who have seen an average income increase during the past two years.
Meantime, the top 1 percent of taxpayers, those with an adjusted gross income of at least $501,000 paid close to half – 45 percent – of all state income tax revenue. Taxpayers in this bracket reported an average AGI of $1.6 million in 2013, which is nearly double the amount of the average AGI in 1994. Meanwhile, all other income brackets have seen a decline in their average AGI.
So what does all this mean for the state budget? The governor’s spending plan now expects that income tax revenue will be higher than what lawmakers originally expected when they passed the budget last year. However, that is not due to overall income growth, but rather because they expect higher-income taxpayers to see their income increase even more, which means they will pay higher marginal tax rates.
Who is to Blame for USA Companies Leaving the Country for Lower Taxes?
Who is to Blame for USA Companies Leaving the Country for Lower Taxes? Imagine you owned or ran a large company that was making a lot of money. However, instead of seeing all of that money count as profit, you were watching a large portion of it being taken due to the United States bloated…
Qualified Small Business Stock: An Opportunity for Investors
Qualified Small Business Stock: An Opportunity for Investors Updated: 11/16/10 Aiming to give a boost to developing small businesses, Congress granted an unusual tax break, allowing taxpayers who buy newly issued shares of qualified small business stock (QSBS) and hold it for five years to exclude from taxation half of their capital gain realized on…
Are You Still Waiting For Your Tax Refund?
Does it feel like this year is just flying by? The Calendar on your wall is right. The year is almost half over already. Where did all that time go? More importantly, where the heck is your tax return? It’s one thing to still be waiting for your return if you waited to file it…
IRS Amended Return
Source: IRS.gov Posted: 4/23/2013 What should you do if you already filed your federal tax return and then discover a mistake? Don’t worry; you have a chance to fix errors by filing an amended tax return. This year you can use the new IRS tool, ‘Where’s My Amended Return?’ to easily track the status of…