California Wants Me to Pay Taxes

Well, they do give us a cool fireworks show every July 4th, which is OK, but... Let's see, what else?

Good school systems? No. Affordable health care? No, not yet and maybe not at all. Roads? Yes, we have awesome paved roads and sturdy bridges... oh wait, never mind about the bridges. Uhhhmmm, we have obese people and millions of other idiots willing to spend a shit ton of money on needless products, food, and CPA offers. Oh, and our military can plow smaller countries back to the stone age. There we go, I knew we were good for something.

'merica, fuck yeah! I feel like shooting someone in the face while eating a double-cheeseburger from Burger King for only $1.
 


^^^
looks like I was right:
from the article: "Until then, Internet companies were considered to be “multimedia” businesses and subject to a tax rate of $1.01 per $1,000 of gross receipts. Under the new classification, they were placed in the “business and professions” category, which has a tax rate of $5.07 per $1,000 of gross receipts. Under the measure approved Friday, the city will create new tax classifications for Internet companies, which will be subject to the same rate as multimedia firms, the lowest rate."


Still $1.01 on every $1000 is enough for me to leave.
 
I get this bullshit in the northern plains too.

Case in point: I live in WI. I own two businesses based in ND. I telecommute 60%+ - and travel < 40% - to a facility in MN.

The state of ND taxes me. Then the state of WI taxes me. And the state of MN taxes me as well. It's utter BS.

It was even worse when my wife still worked and we lived in MN. Her entire W2 income was taxed by the state of ND as well as mine even though she was employed solely in MN and never did a lick of work whatsoever in ND. We'd expect our K1 (corporate income) from ND to be taxed but not her W2.

Our CPA said there's no point in fighting it. Until you win it in the US Supreme Court - and that's a BIG if - the states hold all the cards and can prosecute your ass.

This country's taxes are out of control.
 
dsiomtw said:
The other thing is that your corp really shouldn't have any profits to tax anyway (which is what Cali taxes on). Your profits should be removed from your corp via payroll, dividends, etc. Essentially your net profits should be close to 0, which means Cali gets the same.

Having a corp in Cali is actually better than having one in somewhere like Texas for example, because some states like Texas make you pay a bullshit tax based on GROSS revenues and not profits. For example if you have a Texas corp and have revenues of 10 million and expenses of 10 million, technically you made no money. But you'd still have to pay a big fat tax bill to Texas. Total bullshit.

If you have an s corp or llc then obviously none of this matters because your entity has no profits or losses as everything passes through ...
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Yeah but Cali has a big as annual state tax where Texas has no state taxes. So in that case it would work out the same. In the other case where you're running your business at 0% profit and burning through huge amounts of cash you're doing something terribly wrong. Or you have lots VC money then breaking even is fantastic to them and the tax bill is nothing ($57k at just under $10 million)

Whereas in California if you made 20% of that $10 million as profits that you paid yourself as a dividend (2 million) you're going to be writing them a nice fat check for over $200k in just state taxes. Then you pay the 20%-25% in federal taxes (another $500k or so). Oh and I guess if you live in LA you're taxed another 1% of gross (that alone is as high as the total Texas state taxes) to fund that massive failure of a city so there's another $100k.

The price of living in a socialist state is deceptively high :D
 
I was talking about corporate taxes, not personal taxes. The 2 are unrelated.

But you're right, Cali state income taxes do suck. If you lived in Cali and earned a lot of money I figure you would want to try to figure out ways to reduce that tax burden.

Even still I'd rather pay an almost 10% state income tax and live in beautiful San Diego vs. no state income tax and live in the shit hole that is Texas. No offense to anyone who loves Texas, that is just my opinion.

BTW Texas also has MASSIVE property taxes that are 2-3 times what Cali property taxes are ... so if you happen to live in a 5 million dollar house or something you save some big money there.

I dunno much about the extra 1% tax that LA imposes, but it seems like it would be easy enough to get your internet-based business out of LA if it bothered you ...

At the end of the day, where are you going to go. There are very few if any countries you can relocate to that will provide the same standard of living we are all used to here in the US that won't tax you the same or even more than good old Uncle Sam. If you have a family, small kids, etc. it's even more difficult.

I've decided it's easier to just focus on making more money than stress about taxes ...
 
So has anyone gotten this notice and not ran any traffic through eads? I'm wondering if this is something new that CA is starting to do, or if eads somehow fucked things up with the way they filed.

I've been getting 1099s from CA-based networks for 4 years now and have never seen that letter...
 
Meh I suppose you have the right to your opinion as I think California is a shit hole. So please go ahead and stay in California cause we wouldn't want you here anyway.
Also a $5 million home in california would cost at most $1-2 million in Texas so I'll take the couple extra percent taxes.
 
Also a $5 million home in california would cost at most $1-2 million in Texas
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There's a reason Texas is so cheap - it's a shit hole like I said. If it was so awesome everyone and their brother would be rushing to move there and it wouldn't be cheap. :)
 
dsiomtw said:
There's a reason Texas is so cheap - it's a shit hole like I said. If it was so awesome everyone and their brother would be rushing to move there and it wouldn't be cheap. :)
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Sorry kiddo, but if that's what you think don't check census data, you may have to think twice about talking out your ass in the future.

Between 2000 - 2009 California saw a population increase of 9.1%, shit hole Texas saw a population increase of 18.8%. And you maybe thinking that the relative populations figure into that but you would be incorrect, Cali added 3,090,016 during the time period to shit hole Texas' 3,930,484. (http://www.census.gov/popest/states/NST-pop-chg.html)

Face it, California is last decade's economy, populated by barely camouflaged socialist civic narcissists and reality tv "celebrities" too busy spending time at the beach to realize your state is/has been/and will be broke.

You got nice beaches though, I'll give you that.
Fuckin A I love Texas!

Texas%20Logo.jpg
 
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I love Texas. I went to high school in Houston. It's DEFINITELY not a shithole. If anyone thinks so they need to take a trip to South By Southwest in Austin around this time every year.

But, LA, San Diego and San Francisco are hard to beat economically or quality of life-wise. Last decade's economy? Nah. I have lived in LA and spent plenty of time in the other two (as well as NYC). Trust me on this one.
 
dsiomtw said:
There's a reason Texas is so cheap - it's a shit hole like I said. If it was so awesome everyone and their brother would be rushing to move there and it wouldn't be cheap. :)
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Damn son you just got owned with cold hard facts.
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from my CPA concerning the classification and hi/lo percentages:

There is an Eligibility Questionnaire that we can complete and send in to help the Finance Department determine whether you meet the requirements of a media business, and that can be filed with the application. The Questionnaire provides two questions, to help them determine whether you would qualify: the first deals with whether your business includes any “Adult Entertainment Business”, while the second defines a multimedia company. Part 3 of the definition states that the company “Develops online and internet services, including the design of websites, for clients”. If you do not operate any adult business, AND you fit under the definition, you may qualify for the lower rate.

so, if you're not doing adult and you develop online and internet services/websites (which we do) we fit the lower rate classification.
 
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