How much food do the poor consume? 30% of their income? So they are taxed on 70% of their income compared to the rich who are taxed on not 100% of their income since they don’t spend everything they earn unlike the poor. That social engineering is annoying too, soda is taxed but food is spared. I am guessing the poor drink more soda that the rich. And their life expectancy may not be as high as to benefit from not drinking soda. I haven’t had a sip of soda for over 20 years. I call soda tax BS.
“How much food do the poor consume? 30% of their income? So they are taxed on 70% of their income compared to the rich who are taxed on not 100% of their income since they don’t spend everything they earn unlike the poor.”
Let’s look at it the other way around - the poor are tax-exempt on 30% of their income. The rich? On less than 5%, using your logic. And the poor don’t use the rest of their income on taxable goods - child care and utilities etc. are not subject to sales tax (unlike eating out or home improvement stuff).
I live here. You have to look at it from this perspective: currently, there is a huge push for a state income tax that is being sold as a better system. So there is a lot of press to that extent. The problem? The sales tax is not going anywhere even if the state income tax gets approved. So much for a “better system.”
But that is tangential to this thread. Back to the FEDERAL tax discussion.
While we will probably pay more if they get rid of the state and local tax deductions I am for it. There is no reason why the federal govt should be subsidizing a state or local govt’s decision to raise taxes. If you look at the tax rates in different states it’s eye opening at how high some of the states are taxing peoples income. There has got to be govt waste in there.I know when ever they start taking about a local tax increase here it’s always “oh it’s only a xx. more.” Maybe if we can’t deduct it anymore people will start looking for more accountability in the govt’s spending.
@sylvan8798 there are sneaky taxes on your utility bills. In addition to sales tax the surcharges are hidden taxes. For example, we have a “Low income energy assistance fee” added to ours every month. It’s misleading because it funds an energy efficiency program that EVERYONE qualifies for (think of light bulbs, low flow faucets and high efficency furances and AC).
As a native Californian I have yet to see a tax my state doesn’t embrace with enthusiasm and vigor.
We were just privileged with an additional 17 cent tax on a gallon of gas. We circumvent prop 13 by calling them assessments or fees. In some areas the county sales tax is at 10%.
Some of us have been assessed a “fire protection ‘fee’”
Oh how Sacrament loves it’s ability to tax. They should be holding a party over this new proposal. Any tax is a good tax.
We’ve been discussing moving out of state. DD will be settling into a different area in the next two years. At this point I’d recommend somewhere other than CA. If she decides on one of the places under discussion, we may just follow her out of this Golden State Paradise.
You can always move closer to me, to the most low-tax state in the union (no income or sales taxes—not to mention the lowest per-gallon gas tax in the country), and share in our crumbling infrastructure and educational system!
I’m not one to say that you should always be careful what you wish for, but when it comes to a desire for lower taxes, yep, I’ll totally say that.
And California has some of the highest taxes in the nation, along with a crumbling infrastructure, and mediocre educational system…
I think the issue has less to do with high taxes, and more with inefficient use of tax money. I don’t mind paying California taxes, but I expect good quality services and infrastructure in return.
Yes, Dietz, not to mention our power bills are very high and so are our water bills, (when we’re allowed to use water due to drought). Home prices are ridiculous. And taxpayers get very little for our money except bullet trains to nowhere.
I’m thinking the same as you. There are other places with great weather and much lower taxes.
We have talked about titling the main residence into an S-corp, C-corp or LLC. We currently have the out of state real estate in LLC’s. The idea is to rent back the main residence from the corporation and thus be able to deduct the associate costs - which include the taxes.
Haven’t worked thru all the details but a preliminary sniff test says it’s worth taking a more detailed look at this option.
In tax law there is often more than one way to skin something of a porcine nature.
