NY vs. NJ

[joanmcq]

Not to mention a whopping increase.

[Edsel]

CA Solutions

Joanmcq, I have at length discussions with my CA cousin sometimes. He is from Sacramento area (actually Vacaville), and every bit as conservative as I am.

Grey Davis "shameful" Democrat deficit of $38 B has been replaced by Ahnold's $42B deficit, but for some reason it is not shameful. Does this "flat" 15% tax rate (as Dennis says) replace the graduated CA rate which ranged from 3% to 18%?

For those economists among us who supports the "Flat" tax, ask Californians how they are going to like this one.

[DTS]

Link

I'll bet a dime this will become law. After all, this state needs more money to waste.

Time for me to move to Cabo!

http://latimesblogs.latimes.com/lanow/2009/06/flat-tax.html

[DaveO]

I'm real interested in how this plays out too.

I have a client with a consulting business, an S-Corp. He works for a handful of companies which in turn assign him to work at the offices of their clients for a few days to a few weeks at a time. Those offices are located all over the country. Our problem is how to report his income to those other states, at the corporate level or the individual level. At the individual level we would have to do withholding and unemployment for maybe 10 states a year. If we do it at the corporate level and he works in a state without income tax one or more of the states he works in with an income tax want to tax his income not taxed elsewhere.

[Davc]

I have a client with a consulting business, an S-Corp. He works for a handful of companies which in turn assign him to work at the offices of their clients for a few days to a few weeks at a time. Those offices are located all over the country. Our problem is how to report his income to those other states, at the corporate level or the individual level. At the individual level we would have to do withholding and unemployment for maybe 10 states a year. If we do it at the corporate level and he works in a state without income tax one or more of the states he works in with an income tax want to tax his income not taxed elsewhere.

If the S-Corp has an employee physically present performing services in a state, then the state wants an S-Corp return. Then the shareholders report any distributive income from each state on their 1040 and the employee reports wages by state. Have fun!

[joanmcq]

Edsel, I'm not really conservative (although fiscally yeah; I'm a balanced budget kind of gal), but the whole recall thing made me mad (and it was a waste of money). Both parties put up idiots as candidates, Grey Davis was extremely unpopular (and the car tax hike that he was villified for was written into the legislation that decreased it in the first place..there was an automatic trigger hiking it back up in case of a deficit), and the Republican was an extreme right wing-nut (in the recall, which he instigated, he got less votes than the porn star Mary Carey). CA is a HUGE mess from whatever way you want to look at it, and pretty much ungovernable, since the voters can vote in any kind of spending issue or special tax that can get enough signatures to get on the ballot (deep pockets paying professional signature gatherers), and then market it to the gullible masses. Both sides are incredibly guilty of this and its insane.

I haven't heard anything about a flat 15% tax rate out here though. Nary a mention in the papers. May have been an aside that flew from Arnie's mouth and was forgotten as soon as it was uttered. They're putting pretty much everything out there to see if anything is palatable.