Income tax subsidies California pays to the Swamp

Preston Cooper talks about income tax distortion.

This chart is strictly the income tax disparity due to the higher cost of living in California.  Income tax rates to not adjust for cost of living and create a tax distortion. So a Californian, on average, pays an implied additional $517 in tax, if the IRS can catch him.  New York is the third on the list.

Should we care?  Well not for the California legislature, since they have already increased our taxes twice this year and plan on additional tax hikes.  Plus Jerry has already nailed us for a mostly permanent progressive income tax. But it come to about $10 billion, assuming some 10 million tax payers. Our public sector budget is $140 billion so put that into perspective.