Under the new Trump Tax plan, that "gives breaks to the wealthy", the wealthy in California will be paying more taxes.




"Introducing his state budget proposal earlier this month, California Governor Jerry Brown said out loud what many legislators in Sacramento fear: That California’s highly progressive income tax may be unsustainable in the wake of the Republican tax bill signed in December by President Donald Trump.

“People with higher incomes pay a lot more money, and some of them may be tempted to leave,” Brown said.

California is unusually reliant on income tax to fund the state’s $183 billion budget. And almost half of state income taxes are paid by the wealthiest 1 percent of earners, for whom the top marginal rate is 12.3 percent, with an additional 1 percent charge on incomes over $1 million.

Most people in this group should benefit directly or indirectly from the cuts in individual and corporate rates in the Republican federal tax legislation. But the law also limited deductibility of mortgage interest and of state and local taxes, effectively transferring billions from wealthy taxpayers in high-tax blue states to wealthy individuals in low-tax red states. According to one study, about 38 percent of Californians in the top 1 percent, earning more than $877,560, will pay higher taxes under the GOP plan, as will about one quarter of upper-middle-class Californians earning from $130,820 to $304,630."