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>4. Do we seriously trust the US Government to not mess this up? California is the [0]world's fifth-largest economy and still spends more than it takes in That

by magduf 7y ago

>4. Do we seriously trust the US Government to not mess this up? California is the [0]world's fifth-largest economy and still spends more than it takes in That's because the citizens of California send most of their income taxes to the Federal government, where a portion of it is sent to red states to subsidize them. If California somehow seceded tomorrow and that money was sent to Sacramento instead, the state would suddenly have a budget surplus.

Proziam 7y ago
Source? California has an insanely high state income tax (up to 12.3%), compared to Nevada, which has ZERO state income tax. I find it dubious to put the 'blame' on the federal government for California's finances.
- magduf 7y ago
  I don't need a source, this is common knowledge. Do you not know how the US federal income tax system works? CA does have a high state income tax, but it also contributes far more to federal coffers than NV, and it doesn't get as much back as it puts in. Many other states get more back than they put in. Again, I don't need a source for this, this is common knowledge.
  - Proziam 7y ago
    If you're going to use terms like 'a lot' when dealing with financial topics it helps to offer real numbers backed up by sources so that comparisons can be made. It helps add specificity to points being discussed. So now, when I say "Yes, but a lot of that difference is due to California's own policies forcing higher costs of living -> forcing higher wages -> pushing incomes into higher federal tax brackets...therefore it is actually California's fault that their citizens get creamed on taxes" we could have a meaningful discussion as to what degree California's policies have such effects, and what levers could be manipulated to alter those effects. But sure, go with 'common knowledge' and remove any semblance of intellectualism in the discussion. Let's just make claims like we're on Reddit. > Do you not know how the US federal income tax system works? I do. I'm very aware that there is a substantial systemic interplay between economic conditions within a state and the downwind effects it has on the cost of living, taxation, and quality of life for citizens in that state. The interplay of the various systems at work is definitively not within the realm of 'common knowledge' even if this forum's demographics show higher than average education.

by magduf 7y ago

Proziam 7y ago

Source? California has an insanely high state income tax (up to 12.3%), compared to Nevada, which has ZERO state income tax. I find it dubious to put the 'blame' on the federal government for California's finances.

magduf 7y ago
I don't need a source, this is common knowledge. Do you not know how the US federal income tax system works? CA does have a high state income tax, but it also contributes far more to federal coffers than NV, and it doesn't get as much back as it puts in. Many other states get more back than they put in. Again, I don't need a source for this, this is common knowledge.
- Proziam 7y ago
  If you're going to use terms like 'a lot' when dealing with financial topics it helps to offer real numbers backed up by sources so that comparisons can be made. It helps add specificity to points being discussed. So now, when I say "Yes, but a lot of that difference is due to California's own policies forcing higher costs of living -> forcing higher wages -> pushing incomes into higher federal tax brackets...therefore it is actually California's fault that their citizens get creamed on taxes" we could have a meaningful discussion as to what degree California's policies have such effects, and what levers could be manipulated to alter those effects. But sure, go with 'common knowledge' and remove any semblance of intellectualism in the discussion. Let's just make claims like we're on Reddit. > Do you not know how the US federal income tax system works? I do. I'm very aware that there is a substantial systemic interplay between economic conditions within a state and the downwind effects it has on the cost of living, taxation, and quality of life for citizens in that state. The interplay of the various systems at work is definitively not within the realm of 'common knowledge' even if this forum's demographics show higher than average education.