California

A costly tax break for wealthy venture capitalists is drawing some critical attention from state policymakers.

Since 2017, these companies paid $135 billion in income taxes to foreign governments, but just $29 billion to the U.S.

Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.

States across the nation are debating how best to respond to costly new federal tax cuts.

Many lawmakers who were vocal supporters of this bill will see direct personal benefits while most of their constituents benefit little or will be worse off.

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

States should decouple from the federal Qualified Small Business Stock (QSBS) exemption.

Nearly two-thirds of states now have an Earned Income Tax Credit (EITC). Momentum continues to build on these credits that boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.

Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.

As the Trump megabill blows holes in state budgets, Colorado is leading with reforms to curb offshore tax avoidance and roll back wasteful corporate subsidies.

The new tax law enacted last month found a temporary compromise on the level of the cap, boosting it to $40,000 through 2029, but failed to fix a loophole that allows some rich taxpayers with good accountants to completely avoid the cap

While tax news has slowed as summer comes to an end, there are rumblings beneath the surface that could be an inauspicious sign of the times ahead for states and state budgets.

The Trump megabill hands the richest 1% a trillion-dollar windfall while gutting funding for health care, education, and disaster relief — leaving communities to pick up the pieces. State and local leaders must step up, tax the wealthiest fairly, and safeguard the essentials that keep America healthy, educated, and safe.

Communities across California are feeling the effects of immigration raids and mass deportation efforts, both in the fabric of their communities as well as their economies. Actions and threats against employees, jobs, and neighbors will have a profound impact on our state and nation in both the short and long term. Here, we delve deeper into one aspect of why by discussing the impact immigrants have on our economy.

Across-the-board property tax cuts create less fair local tax systems in the long run. State legislators and local governments should prioritize the residents who can least afford their property taxes, not the residents and businesses who can.

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

The endlessly debated cap on deductions for state and local taxes (SALT) has emerged in the GOP megabill largely unscathed—despite the efforts of Republican lawmakers from “blue” states. Those lawmakers are correct that the cap reduces the bill’s tax cuts for their wealthy constituents more than for those in other states. The megabill, however, is so loaded up with other provisions that result in a dramatic tax cut for the richest 1 percent in every state.

As federal aid ends and economic uncertainty grows, local governments face tough budget choices. Now is the time for localities to protect vulnerable residents and build stronger, more equitable fiscal foundations.

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.