Tag: income tax

Californians and Their Tax Burden

It’s April 15—the perfect day to explore how Californians feel about the state and local tax system and how much they pay in taxes. According to the most recent PPIC Statewide Survey, seven in ten Californians believe that California currently ranks near the top (48%) or above average (22%) in state and local tax burden per capita. The public’s perception is somewhat in line with fiscal facts: California’s state and local tax collections per capita in 2015 were 10th-highest in the nation (Tax Policy Center, September 2018).

Notably, Republicans (65%) are much more likely than Democrats (47%) and independents (48%) to say California’s state and local tax burden is near the top. The share of Californians expressing this view increases with rising income (39% under $40,000, 52% $40,000 to $80,000, 61% $80,000 or more) and this view is more common among whites (57%) than among other racial/ethnic groups (47% Asian Americans, 44% African Americans, 38% Latinos).

Half of Californians (52%)—a record-high share—say that the state and local tax system is either not too fair (25%) or not at all fair (27%). This marks a 10-point increase since March 2017 and a 21-point increase since the first time we asked this question in June 2003. There are notable differences along partisan lines. More than two in three Republicans (69%) see the state and local tax system as not too or not at all fair, as do nearly six in ten independents (58%), compared to about four in ten Democrats (43%).

The belief that the system is not fair is widely held across regions, ranging from a high of 60% in the Inland Empire to 45% in the San Francisco Bay Area. Lower-income adults (46%) are somewhat less likely than more-affluent adults (60% $40,000 to $80,000, 54% $80,000 or more) to say that the current state and local tax system is not fair.

Figure 1: Perception That State and Local Tax System is Not Fair Across Regions

A record-tying 60% of Californians say they pay much more (39%) or somewhat more (21%) than they should in state and local taxes. The share saying they pay much more than they should is a record high and has increased 13 points since we first asked this question in February 2003. This view is widely held across regions and demographic groups. Notably, Republicans (61%) are more than twice as likely as Democrats (25%) and much more likely than independents (42%) to say they pay much more than they should.

Figure 2 - Shares Saying They Pay Much More in State and Local Taxes Than They Should

That said, California voters have passed tax increases in recent years, including extending the Proposition 30 income tax increases in 2016 and rebuffing an effort to repeal the recently passed increase to the state gas tax in 2018. Further, voters across the state have been more than willing to pass local tax measures. With a new governor and a supermajority of Democrats in the state legislature, are new taxes on the horizon? Stay tuned as the PPIC Statewide Survey gauges public support for any new proposals.

Tax Day: Californians Feel Overburdened

Tax day is here, and Californians are feeling particularly burdened.

A record-high number of adults (72%) say that California ranks above average or near the top in per capita state and local tax burden compared to other states. This perception is close to the fiscal facts: a Tax Foundation report ranked California’s 2014 state and local tax collections per capita as 13th-highest in the nation.

Taxes are not only perceived to be high, but they are also viewed as disproportionate: a majority of Californians (56%) say they pay more taxes to state and local governments than they feel they should (37% much more, 19% somewhat more). Californians’ views were similar last March (58%), following an extension of income tax increases on high-earning residents. Today, traditionally tax-opposed Republicans (78%) are much more likely than independents (63%) and far more likely than Democrats (47%) to say that they pay much or somewhat more than they should. This perception is also more common across higher-income groups (65% $80,000 or more, 58% $40,000 to under $80,000). Lower-income groups are more divided: among residents with household incomes under $40,000, 47% say they pay more or somewhat more than they should, while 40% say they pay the right amount.

How do these views align with approval ratings of state elected officials? Among those who say they pay much more than they should, 50 percent disapprove of the way Jerry Brown is handling his job, 60 percent disapprove of the California Legislature, and 57 percent disapprove of the way that the state legislators representing their assembly and senate districts are doing at this time.

Nonetheless, legislators are moving forward with more tax proposals. According to a recent California Tax Foundation Report, the state legislature introduced 33 bills and constitutional amendments since the start of the 2017–18 legislative session that could increase taxes and fees by over $269 billion annually, though few are likely to become law. The most expensive proposals include a government-run healthcare tax, a sales tax on services, and a new tax on California businesses. These proposals come in the midst of an election year and expected state budget reserve of nearly $16 billion.

Californians will soon have the opportunity to make significant decisions at the ballot box—choosing new leaders and helping to shape the state’s future. Stay tuned to the PPIC Statewide Survey for timely coverage of this year’s election and Californians’ leadership preferences.