matilija

Federal law currently requires (nearly) every individual to file a tax return with the IRS, and it requires every business to withhold money from payroll and remit to IRS with appropriate bookkeeping.

Even if California decreed all of that money should be paid to its new agency instead of to the feds, anyone doing so would be individually breaking federal law, and the gestapo would be sent after them. It’s a nice idea but I don’t see how it could work, short of secession (which has its own problems).

Would you like to suggest a mechanism to achieve that? Since every business and taxpayer sends money directly to the federal government, the state isn’t in a position to impede it. Unless you want to start talking about secession, and maybe that would be a good discussion.

That’s really poor of State Farm, though unsurprising. And yet I’m still glad that they haven’t dropped my wildfire-adjacent home. The FAIR plan would be far more expensive, and no other insurer will write a policy that satisfies my mortgage company. FAIR is also underpriced at that, having already gone bankrupt once.

It’s kind of a disgusting capitalism-bootlicking for me to be grateful to State Farm, but they’re my least-bad option at the moment. I expect the private insurers as a group to convince Ricardo Lara that rates need to go way up, or the state will end up being the only insurer in an abandoned market. There’s no other way with the climate change reality and atrocious political conditions for action. The potential mortgage failures if the insurance market fails will threaten a financial crisis on top of whatever other government financial havoc has been wreaked by then.