Not only did its passage [Prop13] gut basic services the state used to excel at, like education, but it also turned real estate into the primary way Californians accrued and preserved personal wealth. If you bought a cheap house in the 1970s in the Bay Area, today it’s a gold mine—and you are disincentivized from doing anything that would reduce its value, like, say, allowing an apartment building to be built anywhere within view.
All of the programs and incentives put in place by the federal and state governments to induce higher levels of growth by building more infrastructure has made the city of Lafayette functionally insolvent. Lafayette has collectively made more promises than it can keep and it's not even close ... This is a pattern we see in every city we've examined. It is a byproduct of the American pattern of development we adopted everywhere after World War II.
Normally, businesses in the city pay a tax of 2.2 per cent of their net income to city hall ... starting in January, an extra 10 per cent tax will be levied if the CEO makes more than 100 times the average salary at the company. If he or she makes more than 250 times, the added tax is even higher — an extra 25 per cent ... There are currently about 550 publicly traded companies including Wells Fargo, Walmart and General Electric that have operations in the city,
In 1924, tax rates were cut. The top rate was slashed from 73% to 46%. And the top bracket was reduced to $500,000 of income (again, many millions in today's dollars). The next year--1925--the tax cuts continued. The top rate was slashed to 25%, down from 73% just two years earlier. The highest wage earners--those who made $100,000 and up--got to keep a vastly larger share of their income than they had only a few years previously.
By the end of 1959 about $200 million was on deposit abroad. By 1961 the total had hit $3 billion, by which time offshore financial engineering “was spreading to Zurich, the Caribbean, and beyond” as jurisdiction after jurisdiction got in on the game. Today, the economist Gabriel Zucman estimates that there is $7.6 trillion of household wealth in tax havens globally—around 8 percent of the world’s wealth.
As world wealth has grown to record levels in recent years – to an estimated $241 trillion – inequality has also grown, with 0.7% of the global population owning 41% of the assets. Wealth managers are estimated to direct the flows of up to $21tn in private wealth, resulting in about $200bn in lost tax revenues globally each year ... The wealthy and powerful are notoriously difficult to study ... wealth management presents particular challenges, as the profession depends on secrecy
This year, state employee pensions will cost taxpayers $5.4 billion, according to the Department of Finance. That’s more than the state will spend on environmental protection, fighting wildfires and the emergency response to the drought combined. And it’s more than 30 times what the state paid for retirement benefits in 2000, before the effects of the new pension law, SB 400, had kicked in, according to data from the California Public Employees’ Retirement System.
Prop 13 changed the way cities raise money. Property tax went from 90 percent of local revenue in the '70s to less than two-thirds today. What took its place? Hotel taxes, utility taxes, and new fees. Mostly, the highly regressive sales tax ... California cities have begun to use a host of fees on new development—like impact fees, parcel taxes, and special assessments... These produce tens of thousands of dollars in new revenue per building permit, a cost that gets passed on to new buyers.
Despite shrinking welfare rolls, the federal government spent more on programs that help the poor. Part of the reason was...under the reform, states could redirect that federal money to programs other than welfare, such as child care, college scholarships and programs that promote marriage as a way to prevent poverty. Tax credits for the poor also maintained overall cash assistance at a stable level, and programs such as food stamps expanded — especially during the recession that began in 2008.
Hamas has recently further raised taxes after a drop in financial support from allies, such as Iran and the Muslim Brotherhood, and the collapse of its tunnel trade with people in Egypt ... Consumers and businesses in Gaza are hit three times by tax. Israel collect taxes on imports into Gaza and the West Bank on behalf of the Palestinian Authority (PA) and transfers the money to the PA after deducting a small administrative fee.