1. A Californian employee? 2. A California-based startup?
I've read about tax rises, but what % are we actually talking about?
No kids, your tax rate goes up a little, and you lose the 2% payroll taxes, and the American Opportunity tax credit for education.
If you're middle-income, you'll probably pay $2000-6000 more.
If you're earning closer to six figures, you'll probably be hit by the AMT and pay over $10,000 more this year.
Around 30 million new people will qualify for the Alternative Minimum Tax if no legislation is passed to increase its income thresholds. That means instead of a progressive tax, you'll pay a flat income tax rate of 26% or 28% on every dollar, plus the higher payroll taxes and lost credits.