It's tax time in California again -- state tax returns must be filed by April 15. But who is paying the most state taxes? Which counties bear the most burden? And how much have state taxes gone up over the years? Check out the graphics below to see ...
Here's the breakdown:
· The wealthy are paying about two-thirds of the state's income taxes.
· California's cities are largely subsidizing rural areas.
An uneven burden
Like everywhere else, California has a progressive tax system, with the wealthy paying more than the poor. Unlike everywhere else, California has a really, really progressive tax system. When it comes time to raise taxes, we say, "Don't tax me, tax the rich people who can afford it." This chart shows the proportion of income taxes paid by income level during the 2008 tax year. Incomes reflect amounts reported on each state tax return.
State taxes paid by income group, tax year 2008
Big cities pay bigger share
Because most of the wealthy live in urban areas, those areas have a much higher average state income tax burden. Residents of Marin County, for example, pay about $11, on average, in income taxes for every $1 paid by residents of Imperial County.
Average tax bill jumps sharply
The average state income tax paid by Californians has risen pretty steadily over the decades. Because our system focuses on the wealthy, though, there have been lots of fluctuations. The dot-com boom, for instance, saw a huge influx of cash as the rich got richer. The subsequent dot-com bust had the opposite impact.
Average state tax paid per return, 1968-2007 (with inflation adjustment, too):
Incomes rising, other taxes falling
Still, it's not fair to just say Californians pay more income taxes these days. For one thing, the state's residents have also gotten richer. For another, the state relies less these days on other taxes like the property tax. Income taxes, then, are, in a way, just a larger piece of a similar-size puzzle.
Income and total taxes paid as a proportion of personal income, 1968-2007
Sources: California Franchise Tax Board, California Department of Finance
"Total taxes" in the fourth graphic excludes departmental, interest and miscellaneous revenues. Inflation conversion factors fromhere.