CALIFORNIA, 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, p39).