04/18/2024

Does Washington shortchange California on taxes? No, not really

)ne of California’s oldest gripes is that Washington shortchanges the state on taxes. But it’s a questionable claim.

The beef is that California sends more money to Washington than it gets back and this isn’t fair.

But are we actually being cheated? No, not really.

“Like many other things, it depends on how you measure it,” says Ann Hollingshead, a fiscal policy expert at the nonpartisan Legislative Analyst’s Office.

The main reason we pay more in taxes than we receive in benefits is that California is more prosperous and younger than most states. So we pay higher taxes and get less back in Social Security and other retiree benefits.

Nevertheless, it’s accepted dogma in California that we’re getting robbed by Washington. It’s a convenient, crowd-pleasing complaint. Ten years ago, I myself fussed about it. Then I opened my eyes.

Sacramento blaming Washington for money problems — and there really aren’t any in this economic expansion — is like President Trump claiming that election “fraud” is why Hillary Clinton got more votes than he did last November. It’s an excuse based on fantasy.

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