Camp Fire victims wake up to another disaster
Should the Federal Government artificially raise taxes by cashing in on the misfortunes of Camp Fire Victims? It sure seems that way to me.
After finally receiving 45% of the PG&E Award last year, it appears that Camp Fire victims will face an unwarranted tax hit this tax season that appears to be based upon the results of double taxation, twisted semantics, and a double-triple whammy.
First, we get to pay taxes on the 33% fee that the lawyers charged us. In turn, the lawyers get to pay taxes on the same fee — “double taxation?”
Secondly, IRS regulations say that emotional distress qualifies as an earned income rather than what it really is in this case — compensation for an event that is grievance and redress in nature. PG&E is paying out these awards to us not for any shareholder advantages, but due to a legal determination of criminal negligence. In no way did we victims willingly engage in this disaster for an “income gain.”
Finally, for this tax year and for the 2023 year, the double-triple whammy will be in effect — 45% this year and 55% next tax season. These two awards will artificially push all Camp Fire victims into higher tax brackets (the double whammy) and for all Medicare recipients it will substantially increase their premiums (the triple whammy). Welcome to the Golden Years, you elderly Ridge Runners!
In summary, under what appears to be a guise of semantics, IRS regulations will have us believe that the Camp Fire
Disaster was an income tax event. That running or traveling through fire or pitch black smoke to save ourselves, our family, our neighbors; and/or seeing our house, car, neighbor and pets go up in flames; and/or the loss of heirlooms, friends, ministers, and congregations; and/or experiencing (and still do) the aftermath of skyrocketing building costs, service costs; and/ or being forced to travel out of town (time and expenses) to connect with relocated businesses, unknown businesses, and churches; and/or forever more being faced with insidious astronomical insurance premiums based on inflated building costs and/or on living in a high risk fire zone is an honest income adventure. It’s not. It’s a claim against criminal negligence and we need every penny of this award to continue to live out our life in PG&E’s fire zone.
Thank goodness the California State Legislature passed legislation that “righted” this wrong. Will the U.S. Congress do the same?
For no citizen should be doubled taxed. No citizen should be taxed on a redressing grievance event. No citizen should be bumped up into higher artificial tax/premium bracket. Most of all, no government of, for, and by the people should cash in on the misfortunes or disaster like ours. It’s just wrong!