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Bucephalus355

I fly out to California 5 days a week for consulting work currently. I live in Texas. So does my wife and dog.

My paycheck’s now include the 13% deduction from California :(

I’m leaving this project as soon as possible.

Would happily pay 13% more for federal income tax FWIW.

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So you don't mind the amount of money you're paying, you mind that it's going to a state instead of the federal government? I can't imagine that's a common gripe.

It’s going to a state he doesn’t live in, I think that’s the problem.

I can sort of relate, although that's still BS. I pay income taxes to the locality where my office is located, which is irritating when it comes time to vote and I don't have any say in how that money is spent, since I can't vote in that city. (as if we as individuals ever really have much say about how our tax money is spent)

On the other hand, if the city wasn't there the job wouldn't exist, and nobody is forcing me to work there.

How many days in California caused this to be triggered?

Looking at the CA non-resident form, I don't see how you have to pay taxes in CA:

https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents-Part...

Why does a 13% tax to California bother you if a 13 percentage point increase in tax to some other entity doesn’t? Is it dislike of California? Dislike of state taxes?

This reminds me of an experiment I read in - I think - Nudge. A random group of people were given the scenario of being at a store and about to buy a box of chocolate for $10. Just before they purchase it they find out they can buy it at a store a few blocks away for $5. Most said they would go to the other store.

Another group of random people were asked the same scenario but with a tuxedo costing $1500. The competitor store a few blocks alway sold the tuxedo for $1495. Most said they would not go to the other store for just a $5 decrease in cost.

He doesn't live in California so would see no benefit from the CA tax, while he theoretically would from a Fed increase.

> would see no benefit from the CA tax

Well, no benefit except for the 70% of his time he spends there.

But, what benefit is he getting during his temporary stays there that is worth anything close to the 13% they're taking?

California's budget is about 35% health care (his doctor is probably back in Texas), 20% education (his kids if he has any go to school in Texas), and about 20% to pensions for state workers, which he obviously derives no benefit from. So how do you justify taxing someone who doesn't live here based on the "benefits" they receive?

> what benefit is he getting during his temporary stays there that is worth anything close to the 13% they're taking?

Things that keep people healthier and smarter, and provide infrastructure and livable wages, do in fact benefit people in the state, resident or not.

I mean, if he's in the 13% marginal tax bracket, that means he's making $1M+ a year. ( https://www.tax-brackets.org/californiataxtable ) The fact that California has such jobs while other states don't have as many is at least partially because the state provides an environment in which such jobs can exist.

If he feels he's not getting sufficient benefit, because of a belief he doesn't live there, he's of course free to choose not to work there.

He's already stated that he's not going to take another $1M+ job in California again. I wish him the best of luck.

He doesn’t benefit from state workers in California? Without those workers the streets would be worse than what they are now. There would be fewer police and a non-functioning judicial system. Certainly his work benefits from a governmental entity that handles contract law disputes. The workers of the company that he works at benefit from state employees. Would the job exist if those workers didn’t exist?

True, if he doesn't really care about his family in TX then he should have no reason to care about his taxes not going to benefit them.

He may not live in California but he WORKS in California.

He is in California five days a week, including at least 4 nights of sleep. He benefits from the airports, roads, police and fire protection, water, and all other services. He also receives such a high income due to the fact that his employer is based in California.

Why shouldn’t he contribute to the state that is providing him with income and the services to support that income?

I see now. I was focusing on not being too upset at 13% being taken in one scenario but not being upset if taken in another scenario.

Other than flying into a California airport, traveling on public streets, having suppport of local police, fire and other services while in California. That said, there are some services taxes go to that he would not receive benefit from. So paying the same tax rates as a resident does not make as much sense.

Not the grandparent poster, but a 13% increase in Federal income tax would apply to everyone in the country, regardless of where they live, and therefore would be fair. Punishing people who don't live in your state (only commute there for work and have an actual, bona fide residence elsewhere) is not fair.

Income gets taxed on where you earn it. It’s been that way for a very long time. This applies to everyone. Don’t see how it’s unfair. I’m certain OP knew this when taking the contract to work in California.

It famously applies to sportsball players as well: if you are an NBA player you pay Canadian taxes on the game check for all games in Toronto, and California taxes on your games in LA/SAC/OAK (and there are extra jock taxes and the like, but we don't need to go into that). A typical NBA player will file over 20 different tax returns for a single season.

That's not true. I was a resident of TX for two years while still working for my SD company was not subject to CA state tax. If you're not present you don't pay.

Right. That's what I said. You get taxed where you earn the money. If you aren't in California when you earn the money then you don't pay California tax. If you are in California when you earn the money then you pay California tax. (I know there are reciprocity laws among some of the states but there aren't between California and Texas.)

ok I misunderstood what you meant by "where [you earn it]". Still though, things get more complicated when you have residence in state A and spend a significant portion of your time working in state B. You're paying taxes which go to other people, regardless of whether or not you benefit partially. My kids don't get better schools, my family doesn't get better healthcare, etc.

Here's a quick solution: find a client that has an office outside of CA.

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