As this article in the Economist just noted, another attempt to diversify the tax base in California failed when lawmakers passed a $115 billion dollar budget June 19th.  The revenues recognized by the state continue to be highly cyclical, and dependent on high-income earners and capital gains.  With a recovering economy, things are currently going well in the Golden State.  However, the portion of revenue raised via income taxes cyclical) continues to increase and the top 1% of wage earners pay over half of the taxes in the state.  All of this suggests that future taxation policies in California will not change, and the chances of Proposition 30’s higher tax rates sun setting in 2018 are next to zero.  If you are in a high tax bracket in California, one strong option to consider is to move your intangible assets (investments) to Nevada via trust.  As its own tax paying entity in Nevada, your family trust (a NING Trust)  would not be subject to California taxation. Please call Greg Crawford at Alliance Trust in Reno at 775-297-4684 for more information.  Nevada has some of the best and most flexible trust laws in the country – it is worth a phone call to find out if Nevada has options for your family.

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