Monday, February 13

Doctor Groups Flex Muscle In Capitol: $2.3 Million in Campaign Cash to Influence Health-Care Reform

News The State Capitol has been abuzz the last couple of days because of a hot list (PDF) circulating in ... More

Feb 10, 2012 06:00 pm by NIGEL JAQUISS  | Comments 3
 

Nonsense Knows No State Boundary: Washington Legislators Get Bogus Job Claims on CRC

News Up north of here, Washington legislators in Olympia are debating whether or not they should authoriz... More

Feb 10, 2012 09:09 am  | Comments 1
 

Occupy Arrestees Win Their Right to Full Trials—Even Though They May Not Need It

News The estimated 160 people arrested during Occupy Portland protests in the past five months have won t... More

Feb 9, 2012 01:24 pm by HANNAH HOFFMAN  | Comments 2
 

Almost Live: Rockets at Blazers

News So I'm having a bit of trouble with the picture, which is coming from my phone (I drew it on my way ... More

Feb 8, 2012 07:09 pm by CASEY JARMAN  | Comments 0
 
 
 
Home · Articles · News · Dr. Know · Dr. Know
November 11th, 2009 MARTY SMITH | Dr. Know
 

Dr. Know

0 Comments
     
Tags:

I was told 50 percent of all the income taxes in California were collected from only 140,000 people. Oregon is one-tenth of California’s size, so do only 14,000 people pay half of all our income tax? And can we squeeze even more cream from these cash cows?

—Jerry M., Portland

By all means, let’s use California as an exemplar of how a state should run its finances. I’m dying to be where they are.

That said, as much as I hate millionaires (even thousandaires have been looking a bit smug to me lately), the truth is that the vast, echo-y udders of our cash cows are pretty well creamed out.

Consider: Our top state income tax rate is roughly comparable to Cali’s 10.55 percent. But it’s not the rates that make the difference in how the two states apportion the tax burden, it’s the details.

According to the LA Times, 48 percent of income taxes in California do indeed come from just 140,000 tax returns. In Oregon, by contrast, the top 1 percent (approximately 18,000 returns) are paying about 25 percent of the income tax. Are the Golden State’s most golden citizens really that much richer than ours?

In a word, no (though they’re probably better-looking). California’s rich don’t pay more income tax than ours; its regular folks pay less.

In Oregon, everyone making over $7,601 (a year!) goes into the 9 percent bracket, with higher rates starting at $125,000, unless voters overturn those higher rates in January.

In California, the top bracket is reserved for those earning over $1 million—and families making under $45K pay nothing. Thus, Cali’s top earners pay a higher percentage of a proportionally smaller haul.

Of course, California makes up the difference (theoretically, at least) with an 8.25 percent sales tax. You say tomato, I say tax lien; everybody pays one way or another.

 
  • Currently 3.5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
 
 
 

 

 
 
 

Web Design for magazines

Close
Close
Close