Because they want to tax the middle class, not the rich.
The amount they charge won't make a dent in the .1% - but it'll be a hit to many people in the top 10%.
An extra $100 in taxes a month to a family making $180k (with house prices and taxes as high as they are in California) is not peanuts. That's literal line-items for middle class families: the cable bill, the car insurance, your kid's music lessons, etc.
$100 is peanuts to someone in the top .1%, though. That's just another Breakfast at Tiffany's.
It does feel like another attempt to milk the middle class by classifying them as "rich". We should stop treating productive people like doctors, trades people, engineers, small business owners, etc. who have worked their way into a ~150-500k range as if they are millionaire hedge fund managers or something.
The same thing happened with Obamacare, affordable for everyone meant almost free if you are poor and crazy expensive if you are making >50k. Meanwhile improving infrastructure or addressing why stuff is expensive is not even part of the discussion.
Its even more devious than that. This is household income, so two parents each making 90k - restaurant managers, entry-level corporate employees, etc. - would also qualify for the highest income tax bracket. 90k is not a high salary in much of California either, this isn't just for higher-earners.
I'm not even sure it would do that. Many "wealthy" people show virtually no income. This will create one more incentive to hide income for those who can afford to do so. And one more tax on those who don't play games with taxes.
The amount they charge won't make a dent in the .1% - but it'll be a hit to many people in the top 10%.
An extra $100 in taxes a month to a family making $180k (with house prices and taxes as high as they are in California) is not peanuts. That's literal line-items for middle class families: the cable bill, the car insurance, your kid's music lessons, etc.
$100 is peanuts to someone in the top .1%, though. That's just another Breakfast at Tiffany's.