New From the CBP: Who Pays Taxes in California? and a Guide to the State’s Tax System

April 12, 2013

Taxes represent our collective investment in our communities and our quality of life. They support our public schools, streets and highways, public hospitals, parks and beaches, and the public health infrastructure that ensures that our food is safe to eat and our water is safe to drink, as well as a range of other systems and services.

As tax day approaches — the day Californians are required to file their income tax returns — a new CBP analysis examines who pays taxes, who doesn’t, and how California’s tax system compares to those in other states. Who Pays Taxes in California? shows that even with the temporary tax increases put in place by voter approval of Proposition 30, California’s lowest-income families still pay the most in state and local taxes as a share of their incomes. The report also shows that over the past three decades, more of the cost of funding state services has shifted from corporations to personal income tax filers.

The CBP is also pleased to be releasing — in advance of tax day — a comprehensive overview of the state’s tax system. Principles and Policy: A Guide to California’s Tax System explains fundamental concepts in tax policy, examines the types of state taxes paid by individuals and businesses, and discusses key trends, policy issues, and options for reform.

— Steven Bliss