Who pays taxes in California

April 14, 2010

The California Budget Project has released its annual look at who pays taxes in California. The report highlights the effect of last year’s tax changes — the tax increase that was pretty much across the board, and the tax cuts for business. According to Jean Ross, the Budget Project’s director, the changes dramatically broadened the range of low-income people who pay income taxes, largely because of the reduction in the size of the dependent tax credit. For a family of four with two children did not pay state personal income taxes in 2008 until their income topped $51,335. In 2009, they reached that threshold at $36,325. The revenue raised from this tax increase, Ross notes, was pretty much wiped out by the revenue lost to the tax cuts for business.

The CBP report is especially helpful because so many of these comparisons look only at income tax. This one looks at income, sales and other taxes.

See the full report here.

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