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CA tax system is mainly set up for retirees - high tax rates for current income, low tax rates for long-term property ownership. Someone who no longer works for
by prostoalex 5y ago
CA tax system is mainly set up for retirees - high tax rates for current income, low tax rates for long-term property ownership. Someone who no longer works for W-2 income, but lives off social security, pension or investment portfolio would flourish in CA.
It's interesting how AZ and FL get the reputation of being great places for retirement, even though their tax system highly encourages current income and penalizes home ownership through higher property taxes.
- AdrianB1 5y agoActually these states maximize the taxes they can extract, some from active people and some from retirees. Taxes are no longer just a way to sustain the society, but a war game between the states and the citizens.
- NeverFade 5y agoCalifornia taxes investment income as ordinary income, and California's taxation of ordinary income is the highest in the nation. So California isn't a great place for retirees. It is among the worst and far inferior to Florida.