Plans to 'tax the rich' hold risks and rewards for California

Fueled by a backlash against the wealthy, Gov. Jerry Brown and left-leaning groups want voters to tax the rich next November.

Californians have shown strong support for the idea in polls so far, despite the fact that they haven't passed a statewide tax hike since 2004.

Brown said this month "the only tax that's overwhelmingly popular is the tax on wealthier people."

Partisans have feuded for years at the federal level over tax rates for the rich. Republicans argue that tax cuts spur investment and economic growth. Democrats say such "supply-side" theories are unfounded and that lower rates are merely a giveaway to the wealthy. As a state, California has particular considerations.

Chief among them are a fear that taxpayers will flee for lower-cost states, a widening gap between rich and poor, and a volatile income tax stream.

Critics say high-income earners and business owners will leave California for states with no income taxes, such as Nevada or Texas.

"There's nothing more portable than a millionaire and his money," said state Sen. Bob Huff, R-Diamond Bar, the ranking Republican on the Senate budget committee.

Read the full story on SacBee.com

Source: http://www.mcclatchydc.com/2011/12/27/134149/plans-to-tax-the-rich-hold-risks.html

shame denver weather donovan mcnabb donovan mcnabb the waltons the waltons weta