In the next few weeks, state policymakers will decide whether to expand California’s Earned Income Tax Credit (CalEITC) — a refundable state tax credit that boosts the incomes of families and individuals who earn little from their jobs. Governor Newsom’s revised budget proposes to expand the credit beyond what he proposed in January, as we […]
This “First Look” analysis examines Governor Newsom’s revised state budget proposal for 2019-20, the state fiscal year beginning on July 1, 2019, and highlights the ways it could impact low- and middle-income Californians.
When Governor Gavin Newsom released his proposed 2019-20 budget this past January, one of the biggest surprises was that he did not include a proposal to extend California’s tax on health insurance plans — or “managed care organizations” (MCOs) — which expires on July 1. (An extension of this tax would require federal approval.) The […]
This report explores the federal Opportunity Zones (OZ) program, explains its structure and tax incentives, and how California’s communities may be affected. The report shows that the wealthiest investors will reap the greatest share of tax savings with OZ tax incentives, while community benefits of the program are uncertain.
On Tax Day, many Californians are realizing how the Trump plan’s cap on itemized deductions for state and local taxes at $10,000 a year impacts their tax return. In states with high housing prices like California — and thus high local property taxes — it means that lots of people can no longer write off all of their local and state taxes and thus have to pay more to the IRS. It’s blatantly unfair. That’s especially true given the fact that large corporations haven’t been paying their fair share to California for a long time. Since the 1970s, corporate tax revenues as a percentage of California’s budget have plummeted more than 40 percent and are at near-record low levels, according to the California Budget & Policy Center.