Liberal CA think tank admits CA has high taxes
Here’s a LIBERAL biased summary of CA vs. the other states on taxes, from the California Budget Project – one of many “nonpartisan” front groups the Democrats set up, trying to con us into raising our taxes.
What is interesting is that even this slick left wing “think tank” can’t hide the fact that we Californians pay taxes well above the national average – even property taxes. It’s always nice to use THEIR stats for OUR side. It’s also fun to add a few cogent clarifications where necessary – I could have added MANY more! See below.
California vs. Other States
How does California’s budget compare to other states? California represents the ninth-largest economy in the world [RIDER NOTE: Down from fifth largest a decade earlier] and its 38 million residents give it the largest population in the United States. California is not alone in its fiscal challenges.
It was reported that for the 2012 fiscal year, 42 states and the District of Columbia will have a combined $103 billion shortfall. States that do not anticipate a budget shortfall include Alaska, Arkansas, Delaware, Indiana, Montana, North Dakota, West Virginia, and Wyoming (according to the Center on Budget and Policy Priorities). California’s projected deficit of $9.2 billion represents 10 percent of its total General Fund budget of $92.6 billion.
[RIDER COMMENT: Outdated -- the May update shows CA’s budget shortfall is from $15.7 billion to $17+ billion -- so far]
According to the Tax Foundation, California’s total state and local tax burden in 2009 ranks 6th, at a rate of 10.6% of per capita income compared to the national average of 9.8%. According to the California Budget Project, we ranked 10th in 2007-08 for total state and local taxes. According to the California Department of Finance, the state ranks 19th in state and local taxes and fees, at $16.42 per $100 of personal income.
Recent data from the U.S. Census shows that Californians are more likely to live in poverty than people in other states. California’s 2010 poverty rate was 16.3%, which increased from the year before. In California, 23.4% of children are living in poverty, also an increase from the year prior.
[RIDER NOTE: “Poverty” is defined by level of “income” – government fails to count as “income” all the welfare plans and subsidies received by “the poor.” Furthermore, our poor are better off (food, clothing, shelter, etc.) than the average MIDDLE CLASS European.]
Comparison of Tax Rate by Type.
California has one of the highest income tax rates for the top 25% of households by income and one of the lowest income tax rates for lower-income households. The top 1% of income taxpayers in California account for almost 40% of income tax revenue.
California has an above-average state sales tax rate, but taxes fewer items than other states.
[RIDER NOTE: "Above average"? Actually we have the HIGHEST state sales tax rate in the NATION -- see, I TOLD you these folks are biased!]
California has one of the highest corporate income tax rates and ranked 5th among the states in terms of per capita corporation tax revenues.
California has below-average property tax rates, but because of higher property values, in 2008, Californians paid $1,449 per capita in property taxes compared to the national average of $1,352.
California collects revenue much differently than other states. In many states, property taxes represent a greater proportion of revenues than income taxes. But California is reverse [sic] due to Proposition 13, which limits property tax rates, and its highly progressive income tax structure.
[RIDER NOTE: This Prop 13 assertion is just political dogma -- it flies in the face of their OWN previous sentence that reports we are above average in per capital property taxes paid.
FACT: California is ranked 14th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But CA property taxes per owner-occupied home were the 10th highest in the nation in 2009.