Institute on Taxation and Economic Policy (ITEP)

California

California Budget & Policy Center: 5 Facts To Know About Corporate Taxes in California

March 5, 2026

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.

Governor Newsom Launches New State Investment and Philanthropic Collaboration To Continue Supporting Families Under Federal Assault

February 23, 2026

Undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 — a number that would rise to $10.3 billion if these taxpayers could apply to work lawfully. People are afraid to leave their homes, children are left without their parents, and families unable to afford groceries. Families are even foregoing critical medical care. […]

Trust Reform is Needed to Protect States, Especially in the Wake of IRS Enforcement Cuts

Trust use is widespread among the wealthiest households, with reports showing that roughly half of the nation’s wealthiest people rely on trusts for tax avoidance reasons

State Rundown 1/22: Cautious Tone Noticeable in Most Statehouses

Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.

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States Can Push Back Against Reckless Federal Tax Policy. Here’s How.

January 22, 2026 • By Aidan Davis, Wesley Tharpe

States Can Push Back Against Reckless Federal Tax Policy. Here’s How.

They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.

Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

State Rundown 1/14: New Year Brings New Resolutions for Funding Key Priorities

State governors are beginning to lay out their top priorities as legislatures reconvene in statehouses around the country.

Curbing Tax Deductions for Executive Pay is a Federal Tax Change States Should Get Behind

This provision in last summer’s tax law could actually make budget-balancing a little bit easier for states if they follow suit.

State Rundown 1/7: New Year, New Opportunities for Progressive Revenue

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.