California
The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.
State Rundown 4/30: Aloha to Tax Cuts, Hawaiʻi Lawmakers Address Revenue Gap with High-End Tax Changes
April 30, 2026 • By ITEP Staff
This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.
Center on Budget and Policy Priorities: It’s Time To End Corporate Tax Avoidance in California by Closing the Water’s Edge Loophole
April 27, 2026 • By ITEP Staff
ITEP cited in testimony in favor of a California policy that would close a profit shifting loophole and ensure that corporations pay their fair share. Read more.
While States Debate New Trump Tax Changes, Equity Must Be at the Core
April 20, 2026 • By Brakeyshia Samms
States continue to debate whether and how to link their state tax codes to the 2025 federal tax law. This is not just a technical debate.
Tax Break for Ultra-wealthy Investors Takes a Hit in Maine and Oregon
April 15, 2026 • By Nick Johnson
Policymakers in Maine and Oregon wisely said “no” last week to an income tax break for deep-pocketed tech investors and venture capitalists that was expanded in last year’s federal tax bill.
California Gov. Gavin Newsom went to Texas recently and claimed: “Texas taxes poor folks more than we tax our richest." He’s right.
USA Today: Californians Want To Tax Billionaires. They’re Threatening To Leave.
March 25, 2026
Carl Davis, research director at the Institute on Taxation and Economic Policy, predicts the number of billionaires who might leave California over the billionaire tax “will be greater than zero, but still very, very small.” Read more.
Los Angeles Times: Eliminating a Corporate Tax Break Is Pitched as a Way To Make Up for Federal Healthcare Cuts
March 17, 2026
Carl Davis, a research director at the Institute on Taxation and Economic Policy, stated that there is growing support nationwide to repeal the water’s edge tax break as public awareness of profit shifting spreads. “Folks are outraged when they hear that these companies are pretending that they are earning their profits in the Caymans or […]
California Budget & Policy Center: 5 Facts To Know About Corporate Taxes in California
March 5, 2026 • By ITEP Staff
Several large corporations pay next to nothing in corporate taxes in California, largely due to overly generous state tax breaks. Reforming the state’s corporate tax system is a necessary step to support the health and well-being of Californians and strengthen economic security for all. Read more.
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