Democrats in the California legislature proposed this week to increase taxes on the state's highest earners to help schools and service industries hurt by the coronavirus epidemic. The lawmakers said that tax increases could raise more than $6 billion a year and transfer funds from the rich to those most affected by the coronavirus epidemic.
The highest marginal tax rate in California is 13.3%. The new proposal will add three new additional taxes to seven-figure income earners: an additional 1% for those with a total income of more than $1 million, an additional 3% for those with a total income of more than $2 million, and an additional 3.5% for those with more than $5 million. However, the California proposal may cause wealthy Californians to flee the state.
Prior to this, New York State also proposed to increase taxes on the rich to cover the expanding budget deficit, and California has another tax increase plan. The widening inequality during the epidemic has also become an increasingly heated topic of discussion, and who should pay the soaring costs to the government. source