Davis will be recalled!

[Dinner]

From http://www.retirementliving.com/RLtaxes.html
Our sales taxes, state income taxes, and property taxes are all very near the highest in the country and taken together they may very well be the highest over all average in teh country. Compare for yourself. Also remember these figures don't include city and county taxes which are very high in California as well.

CALIFORNIA
Sales Taxes
State Sales Tax: 7.25% (food and prescription drugs exempt. Tax varies according to locality. Can be as high as 8.5%)
Gasoline Tax: * 18 cents/gallon
Diesel Fuel Tax: * 18 cents/gallon
Gasohol Tax: * 18 cents/gallon

Personal Income Taxes
Tax Rate Range: Low - 1.0%; High - 9.3%
Income Brackets: ** Lowest - $5,834; Highest - $38,291
Number of Brackets: 6
Tax Credits: Single - $80; Married - $160; Dependents - $251; 65 years of age or older - $65
Standard Deduction: Single - $3004; Married filing jointly - $6008
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt. There is a 2.5% tax on early distributions and qualified pensions. All out-of-state government pensions are fully taxed.
Retired Military Pay: Follows federal tax rules.
Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
After taxes have been paid, homeowners 62 and older who earn $35,051 or less may file a claim for assistance on 96 percent of property taxes, up to $34,000 of the assessed value of their homes. Call 800-852-5711 or visit for details. Homestead exemptions are handled at the county level.

[Dinner]

Originally posted by Jack_www
What the hell??? Calfornia has not cut taxes!!! We pay the highest state taxes in the entire nation!!!! What the hell is this???

A couple of years back we eliminated the highest tax bracket (I believe it was the 11% tax bracket). Now 9.3% is the highest bracket.

[chequita guevara]

Your property tax isn't listed, and, IIRC, it's the lowest in the country.

My previous statement was hyperbole, btw. Every state I've visisted claims it is taxed the most, BTW. The exception is Florida, which abolished it's inome tax and relies on taxing tourists.

[chequita guevara]

According to your link, California ranks 8th in highest taxes.

[Dinner]

California and Massachusetts have been trading the title for most taxed state for decades now. Is it just coincidence that these two states are run by tax and spend liberals?

[chequita guevara]

Massachusetts ranks 13th.

Course, these are also the states with the highest per capita income, so apparently they're doing something right.

[Dinner]

Which site are you quoting from? Also is that just income tax or total tax burden? Some don't include property and sales taxes nor the taxes from the local government. Don't forget to weight the gas tax by the average number of miles driven per year.

[chequita guevara]

The site you linked.

http://www.retirementliving.com/RLtaxburdens.html

[MichaeltheGreat]

Originally posted by chegitz guevara


Yeah, after the other 49, you're the most taxed.

Wrong. California has the highest aggregate taxes at the state level in the US.

Vermont has a slightly higher maximum personal income tax bracket. Trouble is, Vermont's maximum kicks in when you make a bit over 300 grand a year. If you're single, California's max income tax rate kicks in at a little under 40 grand a year, and roughly double that for married couples filing jointly.

California doesn't have quite the highest corporate tax rate any more, but it's near the top. Trouble is, California's is a flat rate with a minimum tax, and no allowance for losses.

California is the only state with a direct income tax on Subchapter-S corporations (which are by definition small businesses) which are taxed like a partnership (i.e. the owners are taxed at their individual tax rates)

California's sales tax isn't quite the highest in the US, but all the states that are close or higher have much lower personal or corporate income taxes.

Same thing with property taxes - plenty of other states are higher on property tax alone, but they offset it with lower income or sales taxes.

If you're Michael Jordan (when he was still playing) and you play a road game in Calfornia, the state figures that since there's 82 basketball games in a regular season, for each game you play in California, you get to pay California personal income tax on 1/82 of your total basketball earnings. If you're Shaq, and you play a game in New Jersey, the State of California doesn't care - it's offshore income from a state employer, so it's California's.

If you're a resident individual or corporation who makes money outside the state, California taxes you on those earnings anyway.

If you're a non-resident individual or corporation who makes money in the state, Calfornia taxes you.

And that doesn't even count "user fees", special assessment district taxes, or county and local taxes.

[chequita guevara]

Originally posted by MichaeltheGreat
Wrong

You missed the part about it being hyperbole.

Everyone complains their state has the highest or next highest taxes in the union. Except maybe Mississippi, but they have the worst funded education in the nation, so we can't take what they say seriously.

[MichaeltheGreat]

Originally posted by chegitz guevara
The site you linked.
http://www.retirementliving.com/RLtaxburdens.html

Nice of them to (a) not show how those numbers were calculated, and (b) to base it on retirees, who generally have most of their income unearned, and presumably aren't buying as many sales taxable items as the average family with a couple of kids.

Tax burdens for retirees are primarily property taxes, whether prescription medicines are subject to sales taxes, and a smaller portion of sales tax and income tax in proportion to their income (because a lot of them already have lots of stuff, and a lot of their income may be below taxing threshold (i.e. social security without outside income, etc.)

[MichaeltheGreat]

Originally posted by chegitz guevara


You missed the part about it being hyperbole.

Everyone complains their state has the highest or next highest taxes in the union. Except maybe Mississippi, but they have the worst funded education in the nation, so we can't take what they say seriously.

And if they're not Californians, they're wrong.

[Jack_www]

Originally posted by chegitz guevara
Your property tax isn't listed, and, IIRC, it's the lowest in the country.

My previous statement was hyperbole, btw. Every state I've visisted claims it is taxed the most, BTW. The exception is Florida, which abolished it's inome tax and relies on taxing tourists.

That is the only tax in California that is low. Like MTG said we are the highest taxed state in the nation.

[The Mad Monk]

Anyone remember a few years ago, when either California or one of its major cities attempted to place a property tax on satellites when they were overhead?

[The Mad Monk]

Found it:

http://www.forbes.com/2001/07/18/0718satellite.html