[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
