California’s tax system

‘Because of a property-tax revolt in the 1970s, California relies heavily on income taxes [Proposition 13 passed by the state’s voters in 1978 froze property tax at 1%. This arguably distorts the housing market as owners of expensive homes pay less tax than they should on their property.]. And, because it is a progressive state, it squeezes the rich. Just 1% of its people account for 46% of personal-income tax revenues. Tax rates probably cannot rise much higher without driving people away,’ (‘The left coast’, The Economist: 27 Oct 2018, p.39).

‘In 1950, 10% of California’s fiscal take came from income tax; by 2014 64% did. The Golden State depends too much on its fine crop of plutocrats, and its funds rise and fall with their fortunes. According to the Franchise Tax Board, the wealthiest 1% of Californians accounted for more than half of all income tax collected in 2012,’ (‘California’s budget,’ The Economist: 27 June 2015, p.37-38.