tldr: California will be a hollowed out version of itself. The writing is on the wall. The single party rule of California and its pension, infrastructure, and healthcare debt most negatively impact upward mobility for the non-licensed blue collar working class.
I have had significant skin in the game on these things happening. I bought over $100K worth of $FB shares at <$240 within the last ~80 days on the basis that the pension+infrastructure+healthcare debt per a capita would drive up onerous taxes on W2’s.
I’m bullish on the W2-pocalypse and bought Facebook, did you? Facebook twisted its earnings with W2pocalypse.
Silently through the night W2’s are being slashed, this is large corporations front running the onerous taxes, fees, and small scale apocalypse that have been accumulating in California.
Let me walk you through some metrics on California.
Min. wage $12/hr
40% of California’s income tax revenue is generated by .5% of the state’s population. (the wealthy)
California’s new tax bill targets the wealthy more on top of what they’re already charged.
1% for $1M-$2M
3% for $2M-$5M
3.5% for $5M+
The worst part is that these taxes are possible for the 2020 year retroactively, meaning if you decided to stay in California under the existing tax regime, they can come after you for the new rate hike. (assuming you’re wealthy)
California’s congress is single party and this bill will likely pass according to some friends of mine who sit in legal and policy spheres. The situation is getting ratcheted in all the worst ways.
Make no mistake….. pension, infrastructure, and healthcare debt makeup 3 thermonuclear bombs coming toward every American man, woman, and child. The writing is on the wall for broke woke states.
- California is aggressive in collecting taxes from moving residents in all other 49 states.
- $50,000/yr or less salary earners and their make up 60 percent of California tax filings but ~2 percent of its income tax revenue.
- SFBA makes up 40% of the state’s income tax revenue but makes up only 20% of the state population California has the highest average impact fees for construction of a single-family home, at $23,455. (up to 3 times higher than other states)
- 25-34 year olds can’t easily own homes in the state of California. ~500k+ is the minimum to purchase a home, at least 5-10 times a yearly salary.
- 7.25% to 10.25% is the sales tax depending on which county you’re in. https://www.cdtfa.ca.gov/formspubs/cdtfa95.pdf
- The bottom 20% pay 7% of their <23k/yr incomes on sales tax.
- The state’s pension unfunded liabilities are estimated to total $93.1 billion ($59.7 billion at CalPERS for state employee pensions and $33.4 billion at CalSTRS for teachers’ pensions) California has some of the highest electricity costs, it will go green and the price will go to $0.25-$0.40/kwh in the next 2-4 years likely.
- In some cases, your electricity rate can be $0.54/kwh. CA taxes will be almost double the 2nd highest state. Free healthcare for everyone, including illegal alien immigrant violent criminals.
- Gov. releasing inmates, defunding / slashing police forces, 3x the per capita welfare spending of the nation, sanctuary for illegal immigrant violent criminals, reparation bills coming, business-crushing regulations, huge secular departure of companies and individuals, and traffic/smog.
America will have a new caste system. It’s coming like a wrecking ball.
The new caste system will look something like this. These differences will all become a lot more magnified under a hostile tax regime, the likes of which Americans have never known.
- Hard Assets vs. No Hard Assets
- Licensured vs. Not Licensured
- Con vs. Ex Con
- Gov’t Union Employees vs. Private Industry Employees W2’s & 1099’s
- W2 vs. 1099
- Flexibility to Move States vs. Immobilized Professions
California has a 10% sales tax in many situations. California’s top rate is 13.3%, astronomical for a state…In 2016, the top 1% paid 45.8% of the state income tax revenue while accounting for 23.1% of the personal income.The top 10% paid 78% of the total tax revenues.The bottom 80% contributed just 10.6%.” Source