Philp: California fire victims may be taxed for their suffering

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Philp: California fire victims may be taxed for their suffering
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Washington’s political dysfunction is blocking bipartisan support to waive taxes on settlements with PG&E.

Warren Thompson shows a picture of the cat who kept him company during his four-hour drive escaping the Camp Fire in 2018.

“Hopefully this doesn’t get pushed back and forgotten about,” said Thompson, who now lives in a Sacramento apartment. After Cinder’s natural passing in 2020, Thompson’s new cat companion is Leo, another Tabby, who enjoys the window view of town.Thompson and thousands of other fire victims throughout California are prisoners of D.C.’s political dysfunction.

As part of its settlement to emerge from bankruptcy, PG&E agreed to create the Fire Victims Trust to partially compensate wildfire survivors. So far, it has dispersed an estimated $10.58 billion in cash and company stock and identified 70,173 claimants. That amounts to about $150,000 per claimant on average so far, which is not exactly enough to rebuild in Paradise — or anywhere in California.

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