Saturday, January 26, 2013

California lawmakers split on Mickelson's tax comment

No net effect?  That is delusional.  When this first came out, his initial comments were so cryptic, I couldn't follow it.

Assemblywoman Beth Gaines, R-Roseville, said it was what Republicans predicted.

"He's another example of our messed-up tax system, and it's driving successful people out of our state," she said.

Mickelson's comment recalls the ongoing spat between the French government and actor Gerard Depardieu, who has acquired a Russian passport and said he would move to Belgium to avoid a proposed 75 percent tax on the wealthy.

But Democrats said there is no evidence in the U.S. or California of mass departures in the wake of higher taxes on the wealthy. State Assemblyman Roger Dickinson, D-Sacramento, called Mickelson "the exception rather than the rule."

"Most of the people who do well love to be in California, and there's no evidence from past occasions when tax rates were higher on the wealthy that it led to any kind of exodus of those who were wealthy or higher-income earners, so I don't expect that to be the case this time, either," Dickinson said.

A study last summer by two Stanford researchers found no net effect in migration out of or into California by the rich after voters in 2004 passed Proposition 63, a 1 percent income tax hike on millionaires. The researchers said "the highest-income Californians were less likely to leave the state after the millionaire tax was passed."

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