[wusher]

When a state increases its expenses every year, it has two choices, grow the tax base or rase the tax rates.

California is already one of the most taxed states and greater increases in tax rates will likely shrink its tax base.

[jeffbee]

The overall tax burden in California ranks 12th among the states, between Iowa and Nebraska. It is not a particularly high-tax state. The cost-of-living issues arise from the lack of housing. It is still a regulatory burden—the lack of housing is caused by bad local government—but it is not a tax as such.

[lumb63]

Do you have a source on the tax burden? I’m living in Massachusetts right now (notoriously called Taxachusetts by some here), and CA sales and income tax rates look to be about 50% and double the rates here, respectively. It looks like property taxes are about 50% higher here, but income and sales tax is way bigger than property tax in my experience. Not to mention California’s notorious gas tax.

[jeffbee]

Massachusetts has a much more noticeable personal income tax because it is not progressive, everyone loses 5% off their paycheck. In California a household with 2 children for example won't pay 5% until their income is > $200k.

[hackeraccount]

I'm not saying that's inaccurate but figuring out tax burden - because of the distinction between rates and what's collected, the state and localities and the way benefits are allocated (among many other things) can be really confusing.

[wusher]

I never said it was the top. being 12th out of 50 does make it a high tax state. Also, the high cost of living is not just the lack of housing. There is a massive regulatory burden on all aspects of california life.

[seanmcdirmid]

Given that people make much more money in California than in Iowa or Nebraska, that is still a lot of taxes coming in.

[jeffbee]

Yes, but how is that related to the OP's Laffer Curve bullshit? High-income and therefore progressively taxed households are the only people still migrating in to California. Migration out of California has everything to do with cost of housing and nothing to do with taxation. The lower-income households that flee the state for Texas, the top destination, are more taxed in Texas than they were in California, but the people migrate anyway because the housing cost difference is larger than the tax difference.

[seanmcdirmid]

Yes I agree. But when people say California is the most heavily taxed state in the nation, its usually a weasel interpretation where they mean California's pay the the most taxes not related to a percentage of their higher incomes. The real killer in California is simply the rent is too high (even food costs are pretty reasonable compared to other states).