California’s Fiscal Crisis and Tax Planning for High Net Worth Individuals

Filed in CPA Blog by on September 25, 2011 0 Comments
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It’s no secret that the great state of California is in a perpetual fiscal crisis. The state budget depends heavily on the income taxes of high net worth individuals, and those incomes fluctuate mightily with the ups and downs of the stock market.
 
The temptation is ever-present in the legislature to expand, increase, and extend both business and personal taxes in California, and the government is, to some degree, forced to go after the money where the money is: high net worth individuals and the middle class. The poor cannot be taxed because the poor do not have enough money, simple enough.
 
Here at Safe Harbor CPAs we are constantly surveying the tax scene in both California and the city of San Francisco, so that our clients are kept aware of upcoming legislative changes. In addition, we are always keenly aware of the need to conduct twice yearly tax planning with our clients, so that you can adjust in a pro-active fashion to changes in tax laws. With planning, we can reduce the tax bite of the Federal government and the state of California – but we must work together.
 
Tax planning is what it’s all about. We can’t see the distant future, but we can often see the near future – and thereby do tax planning for high net worth individuals, the middle class, and small businesses in San Francisco and throughout our troubled ‘Golden State.’ Less is more when it comes to paying taxes!

– Chun Wong, Safe Harbor CPAs – September 26, 2011

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