Thursday, August 21, 2008

Who pays the taxes? (California Edition)

Governor Schwarzenegger is finally pushing for a "temporary" tax hike after saying for five years that we don't need tax hikes in California. He was right on that point. We have a spending problem.

What I didn't know is how low the bar is for rich in California. The highest income-tax bracket of 9.3% kicks in at a whopping $44,814 if you're single, or $89,628 for married filing jointly.

As a founder of an LLC, my partner and I split the revenue of the company after expenses and pay the rest as income. We actually don't dispurse all of that revenue, but still have to pay taxes on it. Hey California, nice to know how easy it is to be rich. Now if it was only that easy to pay all the bills.

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