McNerney: Californians pay more to D.C. than we get back. Here's a way to help with that.

"Californians, on average, paid about $29 billion more a year in federal taxes than the state received in return over the past decade. That's the largest imbalance in the nation. By contrast, there are about 30 states that receive more money from the federal government each year than their residents pay the IRS."

"It's important to note that the State of California doesn't pay taxes to the federal government - rather, individual California taxpayers do. And individual taxpayers can't start paying fewer taxes to the IRS - not without getting in legal hot water. So, any solution we came up with would have to legally reduce Californians' federal tax payments."

"Our idea, Senate Bill 1275, would eliminate the state sales tax you pay when buying a motor vehicle and replace it with a one-time vehicle license fee of an equal amount that is federally tax deductible. If enacted, it will reduce Californians' federal tax burden by up to an estimated $250 million annually."

California is a donor state, paying significantly more in federal taxes than it receives in return. Over the past decade, Californians paid about $29 billion more annually in federal taxes than the state received, the largest imbalance in the nation. Approximately 30 states receive more federal funding than their residents contribute, with much of this money coming from California's tax payments. Frustrated voters increasingly raise concerns about this disparity. Senate Bill 1275 proposes an innovative solution: eliminating state sales tax on motor vehicle purchases and replacing it with a federally tax-deductible vehicle license fee of equal value. This approach would legally reduce Californians' federal tax burden by an estimated $250 million annually while providing a tax incentive for vehicle purchases.

Read at The Mercury News