Comment by erentz

Question: the imbalance between what California contributes vs receivers from the federal government is pretty crazy to me. I'll grant some imbalances are necessary - you will always have richer and poorer areas of the country. But when he gap is as wide as it is, and then it is turned into a tool for punishing CA due to our politics, at what point should CA seek to seriously tackle this? Firstly of course is the very long shot possibility of successon, but I was wondering if there might be something in the tax code that would allow CA to shut off the flow of money to the federal government? Perhaps by implementing some kind of massive tax and dividend scheme (e.g. naively I'm thinking if I'm allowed to deduct state taxes - what stops CA from taxing 100% of my income, so I pay nothing to the federal government, then CA pays me a "dividend" equal to my income minus whatever the real tax rate should be (30% or whatever).