George Lucas sold his California based company to Disney in 2012 to avoid upcoming tax hikes. That one transaction was probably north of a billion dollars, creating a one time boost in California’s income tax. How many other California based companies issued massive dividends and other tax avoidance strategies to take advantage of the 2012 tax rates??
How bad is California’s business climate, look at the billions of dollars in deficit of the State employer funded Workers Compensation Fund. There is only one way out of that whole, raise unemployment taxes through the roof. Think about it, if you owned Chevron, head quartered in California and moved to Texas, the real oil capital, what are the benefits? Move all works who (including the entire HQ) who are not directly tied to Calif’s oil fields, distribution or gas stations. NO STATE INCOME TAX, that would add a billions to the bottom line; Where are all the trained oil employees Texas or Calif?; lower payroll and unemployement taxes; cheaper housing for all Chevron’s employees. Good for Chevron’s Shareholders bad for California!
Your post makes so much sense & yet it falls on the deaf ears of trolls like marybethelizabeth.
Are they that stupid or that belligerent?
Won't matter much when king obama seizes oil production.
ESPO, don't forget that Apple Computer legend Steve Wozniak is also looking around. He's currently a California and U.S. citizen.
Apple Co-Founder Steve Wozniak Seeks Australian Citizenship, Wants to Live in New Zealand
In a a COMPLETELY UNRELATED story, the United States continues to fall on the Economic Freedom Index, now down to number 10.
Australia is ranked #3 and New Zealand is ranked #4 on the index.
January 10, 2012 at 8:08pm
Here is the media twisting the facts. S-Corps don’t pay Federal and State taxes by their shareholders do, so the Federal and State Governments are still getting their take. The manipulation is occuring with Capital Gains income. You have folks in the Finance industry who can change their salary to Capital Gains income, which significantly reduces their tax rate and their taxes, that is where the Governments are getting shorted.
A big part of GE is their Bank. Banks lost a lot of money. There is nothing wrong with a Corporation like GE posting loses from their banking operations to reduce or eliminate their income tax.
December 29, 2011 at 8:06pm
The folks that vote for her most likely are not paying the taxes that support this payout. That is how she keeps getting re-elected. Remember the 1%?
August 15, 2011 at 11:36am
Mossbrain, let’s say you bought a stock for a $1,000 and over time it turns out to be worth $10,000,000. You are feeling good and want to go out and buy a new $1,000,000 home. Do you (A) sell $2,000,000 of your stock, pay Federal and State taxes of a $1,000,000 and take the remainder to buy your home or (B) borrow $1,000,000 at 5% interest and use your $10 million dollar estate as collateral and avoid paying any taxes? My point, when you are in the top marginal tax rate, it is easier to pay interest then sell your stock and pay captial gains.
August 15, 2011 at 11:31am
“Hate the man”, I don’t think people hate Buffett, they just don’t like his policy on taxation. He talks about unfair taxation of the weatlhy but he wants to tax folks who work and report income. Buffet didn’t make his money on salary and income, he made it on investments, which are not taxable until they are sold. Regarding his charitable gifts, tax deductable.
August 15, 2011 at 11:27am
Here is a guy who made his money on growing investments, which have little to no taxes. Buffet takes a small salary. The whole tax system is build around salary and income, which Buffet has very little. Buffet wants to raise the taxes on salary and income, not wealth. I say we impose a wealth tax on those who have assets of 10 billion or more, how about 1% a year? Let’s see if Buffet and Gates get behind that idea instead of trying to take money from working Americans.
I'm pretty sure Buffet wants to raise the capital gains tax back to 30% from it's current 15%. Buchanan wants a zero% tax on capital gains, I think, I may be wrong but I'm pretty sure I read that somewhere.