California Income Tax

[NewToCA]

Dividends and capital gains are treated just like ordinary income in California, so the opposing argument would be why should labor income be penalized over passive income?

Many folks with wealth who object to this move away, Nevada doesn't tax dividends or capital gains.

[readuntil]

Originally Posted by NewToCA

Dividends and capital gains are treated just like ordinary income in California, so the opposing argument would be why should labor income be penalized over passive income?

Since the job is in CA, it's OK for the state to tax it. If you leave CA, you don't have to pay taxes on the salary from your job, but then again you don't have that job anymore. However, regarding your capital gains and dividends, if you leave CA, you still have the income from these dividends and capital gains, so why should CA have a special claim to it?

Taking the argument one step higher, why should the federal government have a claim to my income from dividends and capital gains, especially when the companies are foreign? Once again, I'm inclined to say that a good bit of the money should go to the UN (United Nations). But then again, living anywhere the US provides benefits, such as greater safety and a good bit of freedom. But living in CA provides no such benefits when compared to other states.

[tchick]

Shhh..... In NC we are taxed on the amount of rain runs off our roofs?

At least California would catch a break if they enacted this tax!

[clausnitzerm]

I am new to this forum and to CA and want to know the cheapest city in CA to buy a home. anybody?

[EscapeCalifornia]

Originally Posted by clausnitzerm

I am new to this forum and to CA and want to know the cheapest city in CA to buy a home. anybody?

Where ever it is, you don't want to live there.

[sheri257]

If it's any consolation ... at least our income taxes buy lower crime rates in California.

The state is spending another $8 billion on new prisons because with our third strikes law ... we lock criminals up for a longer period of time which gets them off the streets.

And yes ... it does reduce crime rates. To wit:

FBI stats for violent crimes per 100,000 people for 2006:

Table 8 - Crime in the United States 2006 (http://www.fbi.gov/ucr/cius2006/data/table_08.html - broken link)

Los Angeles: 786
San Francisco: 875
San Diego: 504

Major cities in states with no income tax:

Houston: 1169
Dallas: 1206
Las Vegas: 982

So at least you're getting something for your tax money ... less crime.

[readuntil]

Originally Posted by sheri257

If it's any consolation ... at least our income taxes buy lower crime rates in California.

...

So at least you're getting something for your tax money ... less crime.

The high income tax rates in CA also, in my opinion, compensates in part for the lack of tax revenue from prop. 13, an over-generous college system (for example I paid $14 for a little over 10 dance lessons each of which was 2 hours), and a bloated K-12 education system with lots of administration and special interests, etc, etc. CA can get away with all this crazy spending because salaries are high, thanks to Hollywood and the big corporations. I'd be happier directing my state taxes to worldwide social causes (not just CA social causes), especially on dividends from foreign owned stock. CA is too greedy to take that money.