Comprehensive Tax Reform in California: A Contextual Framework
Many believe the current tax system does not serve California as well as it might, and that a review of the entire structure is long overdue. Post – Proposition 13 revenues from the sales and use tax, the corporation tax, and the property tax have diminished. This has increased California’s dependence on the personal income tax. The increasing volatility of the state’s economy (and the stock market) has translated into greater unpredictability of state tax revenue, presenting challenges for budget forecasts.