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California’s tax system, which relies heavily on the wealthy for state income, is prone to boom-and-bust cycles. While it delivers big returns from the rich whenever Wall Street goes on a bull run, it forces state and local governments to cut services, raise taxes or borrow money in a downturn. During the Great Recession, amazon kindle the capital-gains taxes that sustained the state in good times plummeted. School districts handed out 30,000 pink slips to teachers, and the state was so cash-strapped it gave out IOUs when it couldn’t pay some of its bills. California is now enjoying one of the longest economic expansions in state history, but the good times can’t last forever. With an "inevitable recession lurking in our future," Gov. Jerry Brown has warned, state and local governments are more vulnerable than ever to teacher and police layoffs, park and library closures and cuts in health and welfare services for the poor.

Past bipartisan efforts to reduce volatility without raising taxes on the poor and working class have had limited success. The overall tax structure hasn’t been updated, leaving parts of the economy taxed at some of the nation’s highest rates while other sectors, such as services-which many other states do tax-aren’t taxed in California. Politicians like to talk about the problem, explaining how Proposition 13, the famous 1978 measure that limited property taxes, has created unequal tax burdens. Yet few have been willing to initiate change. Let’s take a deeper look at California’s tax structure, examine the tradeoffs we live with as a result and explore what changes might be afoot. We’ll walk you through what we live with today, the problems we encounter and the proposals to fix them. This reporting project was produced in partnership with the Ravitch Fiscal Reporting Program at the CUNY Graduate School of Journalism. California state and local governments received $419 billion from taxes, fees and federal funding in 2015, the most recent data available from the U.S.

Of that, $93.3 billion came from Washington, while state and local governments raised $325.7 billion from a combination of taxes and fees. This included not only common taxes that residents pay on property, sales and individual and corporate income, but also other charges and www.solitaryisles.com fees that governments have tacked on over the years for hospitals, highways and schools. The differences between taxes and fees can be obscure and often provoke politically charged debate, but in the end they’re both a way to raise revenue for state and local governments. If we were to isolate common taxes, the amount would be $228.7 billion. The Legislative Analyst’s Office, a nonpartisan adviser to lawmakers on financial matters, breaks down the distribution of revenue sources. California’s major revenue sources have shifted over time. Until 1995, the biggest was property taxes Today, it’s personal income taxes. As the fifth-largest economy in the world, California has big demands-a wide variety of public needs from roads and highways to parks and prisons. ᠎This h᠎as been　gen​er at​ed with the help  of GSA C on​tent Generator D emov​ersion !