Re:PG&E turning off power to protect against fire has create...
by jdhn on Wednesday October 30, 2019 @08:26AM
(#21396904)
Saying that California is a low tax state is completely wrong. The state is known for high taxes even when compared to other liberal states in the US.
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Re:PG&E turning off power to protect against fire has create...
by tstrimple on Wednesday October 30, 2019 @10:49AM
(#21398337)
This is misleading due to how states structure their tax code. California has a high top marginal rate, but its progressive taxation system leads to many of the middle class and under paying lower taxes than in other states. I live in Iowa, for example, and the top marginal tax rate is 8.9% for all income earned over $72k. The top marginal rate in California is 13.3%, but only applies to income over $1MM. A couple making $80k in California will pay about $2k (effective 2.52%) in income taxes, while the same couple in Iowa will pay $3,976 (effective 4.97%). You can't just compare tax rates by comparing the top marginal rate. You've got to look at how they actually impact people.
Re:PG&E turning off power to protect against fire has create...
by mikestew on Wednesday October 30, 2019 @11:24AM
(#21398726)
As if that's not complicated enough, throw in the 10% CA sales tax versus 7% in Iowa. And property tax. Prop 13, Prop 8(?), et. al., can make a considerable difference, as I understand it. Props or not, the total is likely to be higher just because housing is much more expensive in CA. 20% of 200,000 is a lot less than 10% of 1MM.
But in the end, as a WA resident who has given serious consideration to moving to CA and has done this math a few different ways, my gut has a hard time believing Iowa's overall tax burden is comparable to California's. Regardless, maybe it's true or maybe it's not, but is an extra $10,000 in taxes what's really keeping you from picking up and moving? I posit that for most on HN, no, it's a lot of other factors like housing and traffic.
But to the topic at hand, others have pointed out that PG&E is financed by rate payers, not taxes. And CA has some pretty high electric rates. So why are the forests catching on fire?
Re:PG&E turning off power to protect against fire has create...
by donkeyd on Wednesday October 30, 2019 @09:49AM
(#21397669)
That's all relative though. In the US, California has high taxes. Compared to many European countries, taxes in California are still very low.