By Jim Miller
Tomorrow is tax day, and we are likely to hear the usual histrionics from the pity the millionaire crowd about how the draconian taxes on the affluent and businesses in “Taxifornia” are killing growth and jobs and driving folks out of the state. There is only one problem with this—it’s not true. Indeed, far from the socialist hamlet that the anti-tax zealots like to portray us as, California’s tax system is still more regressive than progressive.
This is documented in the California Budget Project’s (CBP) Annual report “Who Pays Taxes in California?” that shows that, “Contrary to the oft-repeated claim that high-income Californians pay an unfair amount of taxes, it is actually California’s low-income households who pay the largest share of their incomes in state and local taxes.”
Consequently, the CBP argues that “Given widening income inequality over the last generation, and the ongoing economic challenges facing Californians in the aftermath of the Great Recession, policymakers could take specific steps to reduce the regressive nature of California’s system of state and local taxes and to promote economic security for low-income families.”