California has long encouraged its business entrepreneurs, especially those in the Silicon Valley, to start up, stay and sell their companies here.
Now, however, the State has eliminated the 50% deduction on capital gains, which is 9% in California. Not only that, they have made it retro-active to 2008.
So, if you sold your company in 2009, you must now pay an additional 4 1/2% in taxes. Will businessowners now move?
The 50% off was what many thought kept companies from moving out of California. With that incentive gone, and a 9% capital gains tax, how many will desert the state?
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