I’ll remind you, this is not state income taxes and property taxes and federal income taxes and sales taxes combined. Since California has the highest state income tax, that cap hurts them the most. In the end, about one million Californian households actually ended up paying more in federal and state income taxes taken together. For example, the top tax rate for the highest income bracket was 7% when the federal income tax began in 1913. Indeed, this counteracts much of the high state income taxes in California and is the reason that Meet Kevin decided to stay.