California already has some of the highest taxes in the nation. Destroying Prop 13 and increasing property taxes will only make California’s tax burden and cost of living even worse.
So, how does California rank?
state income tax
California’s top personal income tax rate is 13.3%, the highest of any other state. Even worse, most small businesses are partnerships, sole proprietorships, LLCs, and S corporations, and generally pay their business taxes at the personal income tax rate, adding to the burden on California’s small businesses.
state sales tax
California has a 7.25% state sales and use tax, which is the highest in the nation. On top of this, local governments can levy additional sales and use taxes.
California’s state taxes and fees on gasoline total to 61.20 cents per gallon, according to a July 2019 report by the American Petroleum Institute, ranking California as the highest in the nation.
state business tax climate
As reported by the non-partisan Tax Foundation’s 2019 State Business Tax Climate Index, a combination of California’s corporate tax, individual income tax, sales tax, property tax and unemployment insurance tax contributed to its ranking as the second worst business tax climate in the country.
What are the consequences of California’s high tax burden?
percentage of population living in poverty
According to the United States Census Bureau, California has the highest percentage of population living in poverty adjusted for cost of living.
percentage of homeless
California had by far the highest number of homeless in 2018, accounting for 24% of the national total, according to data from the United States Department of Housing & Urban Development.
cost of living
According to 2017 data from the United States Bureau of Economic Analysis, California has the third highest cost of living among the states.