Job Losses CaLifornia
REAL DISPOSABLE INCOME IN CALIFORNIA Annual Change per Household $0
2011
2015
Job Losses in
2020
California
–$500 –$1,000
from the Obama Tax Hikes
–$1,500 –$2,000 –$2,500 –$3,000
What’s the Big Deal?
–$3,500 –$4,000 –$4,500 –$5,000
–$4,722.87
© Kevin Lamarque/Reuters/Corbis
Bottom Line: Less Money in Your Pocket Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
For more information, visit: www.heritage.org/CaliforniaTaxHikes For comparisons with other states, visit: www.heritage.org/TaxHikes
P
resident Obama’s tax plan would allow portions of the 2001 and 2003 tax cuts to expire, resulting in steep tax hikes beginning in January 2011 for small businesses and those earning $250,000 or more. The tax hikes would significantly affect the economy in California, most notably in the number of jobs and change in personal income. Among the results, from 2011 to 2020, the state of California would: • Lose, on average, 81,518 jobs annually.
214 Massachusetts Avenue, NE Washington, DC 20002 (800) 546-2843 heritage.org
• Lose, per household, $37,312 in total disposable personal income. • See total individual income taxes paid by Californians increase by $69,200,000,000 — more than 69 billion dollars.
Effects of the Obama Tax Plan on California
S
ince 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing successful policy: The President and his supporters are calling for tax increases, primarily on upperincome taxpayers and businesses — including small businesses, the primary job creators in the country.
Change in Employment in California Average Annual Change in Total Employment, 2011 to 2020, by Congressional District
Jobs Lost: 800–1,399 1,400–1,599 1,600–1,799 1,800–2,320
Those who will be most burdened if this plan becomes law are the millions of Americans just starting their economic lives and the millions more trying to find work after the worst recession in 60 years. The rest, whose lives are affected by the investments and business decisions of those taxpayers in the high-income classes, will share the burden. No income earner will be unscathed. Instead of extracting more income from the private economy, Congress should immediately reduce its spending and enact fundamental entitlement reform that supports strong economic growth. Employment and the economy cannot be made to grow through higher taxes. It is crucial for Congress to recognize this fact. TOTAL EMPLOYMENT IN CALIFORNIA Annual Change in Jobs 0
2011
2015
2020
81,518 jobs lost annually on average
Bottom Line: Higher Unemployment
TOTAL INDIVIDUAL INCOME TAXES IN CALIFORNIA Annual Change in Millions of Dollars
$8,587.7
$9,000 $8,000
–20,000
$7,000 –40,000
$6,000 $5,000
–60,000
$4,000 –80,000
$3,000 $2,000
–100,000
$1,000 –120,000
–102,972
Bottom Line: More Jobs Lost
$0
2011
2015
2020
Bottom Line: Higher Taxes
2011
2015
Job Losses in
2020
California
–$500 –$1,000
from the Obama Tax Hikes
–$1,500 –$2,000 –$2,500 –$3,000
What’s the Big Deal?
–$3,500 –$4,000 –$4,500 –$5,000
–$4,722.87
© Kevin Lamarque/Reuters/Corbis
Bottom Line: Less Money in Your Pocket Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
For more information, visit: www.heritage.org/CaliforniaTaxHikes For comparisons with other states, visit: www.heritage.org/TaxHikes
P
resident Obama’s tax plan would allow portions of the 2001 and 2003 tax cuts to expire, resulting in steep tax hikes beginning in January 2011 for small businesses and those earning $250,000 or more. The tax hikes would significantly affect the economy in California, most notably in the number of jobs and change in personal income. Among the results, from 2011 to 2020, the state of California would: • Lose, on average, 81,518 jobs annually.
214 Massachusetts Avenue, NE Washington, DC 20002 (800) 546-2843 heritage.org
• Lose, per household, $37,312 in total disposable personal income. • See total individual income taxes paid by Californians increase by $69,200,000,000 — more than 69 billion dollars.
Effects of the Obama Tax Plan on California
S
ince 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing successful policy: The President and his supporters are calling for tax increases, primarily on upperincome taxpayers and businesses — including small businesses, the primary job creators in the country.
Change in Employment in California Average Annual Change in Total Employment, 2011 to 2020, by Congressional District
Jobs Lost: 800–1,399 1,400–1,599 1,600–1,799 1,800–2,320
Those who will be most burdened if this plan becomes law are the millions of Americans just starting their economic lives and the millions more trying to find work after the worst recession in 60 years. The rest, whose lives are affected by the investments and business decisions of those taxpayers in the high-income classes, will share the burden. No income earner will be unscathed. Instead of extracting more income from the private economy, Congress should immediately reduce its spending and enact fundamental entitlement reform that supports strong economic growth. Employment and the economy cannot be made to grow through higher taxes. It is crucial for Congress to recognize this fact. TOTAL EMPLOYMENT IN CALIFORNIA Annual Change in Jobs 0
2011
2015
2020
81,518 jobs lost annually on average
Bottom Line: Higher Unemployment
TOTAL INDIVIDUAL INCOME TAXES IN CALIFORNIA Annual Change in Millions of Dollars
$8,587.7
$9,000 $8,000
–20,000
$7,000 –40,000
$6,000 $5,000
–60,000
$4,000 –80,000
$3,000 $2,000
–100,000
$1,000 –120,000
–102,972
Bottom Line: More Jobs Lost
$0
2011
2015
2020
Bottom Line: Higher Taxes
