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Re:Silicon Valley stirs over proposal to end popular QSBS ta... by b9a2cab5 on Tuesday September 14, 2021 @08:56PM (#28533737)
Because of graduated taxation and government benefits, many of those people making 5 figures receive free or subsidized healthcare and other benefits from the CA government while paying a much lower effective tax rate. Essentially CA is just taxing the middle class but instead of the middle class it's the upper middle class.

An actually effective tax would be a wealth tax with no exemptions for all the homeowners sitting on 1000% gains and angrily voting against all new development. Highly taxing high incomes in my opinion _reduces_ socioeconomic mobility, since the wealthy don't pay rents and therefore spend much less than high income earners who are not yet wealthy.

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