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California Tax
Hikes Affecting Small Businesses |
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On 6 November 2012 California Governor Gerry Brown placed
Proposition 30 on the ballot which asked the people of
California to vote on increasing personal income taxes and
sales taxes. The measure was approved. The final vote count
is still being conducted.
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The measure will raise sales taxes as follows: |
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Raises from 7.25% to 7.5%. This is a 3.45% percentage
increase. |
The measure will raise
personal income taxes on 5 categories of income as follows:
Taxable
incomes exceeding $250,000 but less than $300,000: increased
from 9.3% to 10.3%
Taxable
income exceeding $300,000 but less than $500,000: increased
from 9.3% to 11.3%
Taxable
income exceeding $500,000 but less than $1,000,000:
increased from 9.3% to 12.3%
Taxable
income exceeding $1,000,000: increased from 10.3% to 13.3% |
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The law will be retroactive to 1 January 2012 and is
intended to last for seven(7) years. |
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The law is intended to riase $9 billion to stem a budget
shortfall for the state. It will have an impact on small
business that pay taxes at the personal rate.
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By Jack
River
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