Skip to content

key takeaway

California’s refundable tax credits for low-income residents make up a small fraction — less than 2% — of the state’s nearly $80 billion of tax breaks, which disproportionately benefit profitable corporations and the wealthy.

California’s three refundable tax credits — the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit, and the Foster Youth Tax Credit — are the only credits that benefit people with very low incomes.

Yet, these credits make up less than 2% of the nearly $80 billion total cost of state tax breaks for individuals and businesses. Many of these other tax breaks largely benefit high-income individuals and profitable corporations.

Everyone deserves an opportunity to achieve economic security. State leaders can make the tax system more fair by expanding credits that reach Californians with low incomes.

A donut chart showing the estimated cost of tax breaks in the fiscal year 2023-24 where tax credits for Californians with low incomes make up less than two percent of individual and business income tax breaks.

Stay in the know.

Join our email list!