According to the Tax Foundation, the nation’s leading independent tax policy nonprofit, a think tank based out of Washington DC, California is considering doubling taxes for taxpayers.
“A proposed constitutional amendment (ACA 11) in California would increase taxes by $12,250 per household, roughly doubling the state’s already high tax collections, to fund a first-in-the-nation single-payer health-care system. The top marginal rate on wage income would soar to 18.05 percent—nationally, the median top marginal rate is 5.3 percent—and the state would adopt a new 2.3 percent gross receipts tax (GRT), at a rate more than three times that of the country’s highest current pure GRT.
All told, the new tax package is intended to raise an additional $163 billion per year, which is more than California raised in total tax revenue any year prior to the pandemic.
The new taxes would take three forms:
Go To Tax Foundation to read the article written by Jared Walczak of the Tax Foundation.