Impact of President Obama's tax plan on California and how the planned tax hike or tax increase will impact California's economy

1. THE EFFECTS OF THE OBAMA TAX PLAN
California
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
in California, most notably in the number of jobs –20,000
and change in personal income.
Among the results, from 2011 to 2020, the state –40,000
of California would:
• Lose, on average, 81,518 jobs annually. –60,000
• Lose, per household, $37,312 in total
disposable personal income.
–80,000
• See total individual income taxes increase by
$69,220 million.
–100,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –120,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–102,972
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$8,587.7
2011 2015 2020
$0 $9,000
–$500 $8,000
–$1,000
$7,000
–$1,500
$6,000
–$2,000
$5,000
–$2,500
$4,000
–$3,000
$3,000
–$3,500
$2,000
–$4,000
–$4,500 $1,000
–$5,000 $0
2011 2015 2020
–$4,722.87
Chart CA • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in California
Average Annual Change in Total
Employment, 2011 to 2020, by
Congressional District
2 Jobs Lost: 800–1,399
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799
4
Jobs Lost: 1,800–2,320
1
State: 81,518 jobs lost annually
on average
6
11 3
19
18
17
21
20
25
22
24
41
45
49
52 51
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.
Map CA • Obama Tax Plan by State heritage.org