Corporate income taxes are one of the smallest sources of state and local tax revenue. On average, only 3.7 percent of state and local tax revenues came from corporate income taxes in fiscal year 2014 (the most recent data available).
Some, however, mistake the corporate income tax as the entirety of a business’s tax burden. In reality, businesses pay many types of taxes (such as sales tax, property tax, excise taxes, and more) and the corporate income tax makes up only 9.5 percent of total business taxes.
The share of revenue from corporate income taxes will decline as more businesses organize as pass-throughs (S-corps, partnerships, sole proprietorships, etc.), which “pass their income through” to their individual tax returns and therefore are liable under the individual income tax code.
Broome chastised the state for not doing enough to keep jobs in California and said the economic council was committed to a “new beginning to make jobs a priority.” He said the state “lacks compassion” when it comes to widespread job losses. Council officials cited Texas, Arizona, Minnesota, Washington and Alabama as having more sophisticated statewide economic development programs.
“As the state prison population comes close to exceeding a court-mandated limit, the California Department of Corrections and Rehabilitation is pursuing new regulations that aim to get more inmates paroled more quickly over time,” the Sacramento Bee reported. “The proposed rules, originating from voter approval of Proposition 57 in November and unveiled [March 24], would allow ‘nonviolent’ felons to first seek parole at the conclusion of the base term for their primary offense, before serving additional time for other charges and enhancements that can add years to their sentence.”
As Hamby’s experience reflects, the frustrations of living in the Bay Area have become so pronounced that confidence in the economy has sunk to its lowest level in four years, according to a survey released Saturday by the Bay Area Council. Housing and traffic concerns have usually topped the list, but they have intensified this year. In 2014, 53 percent of respondents said they felt the economy was doing better than it was in the previous six months. According to the survey, only 31 percent of respondents feel that way today.
Police officers began making fewer arrests. The following year, the Los Angeles Police Department’s arrest numbers dipped even lower and continued to fall, dropping by 25% from 2013 to 2015. The statewide numbers are just as striking: Police recorded the lowest number of arrests in nearly 50 years, according to the California attorney general’s office, with about 1.1 million arrests in 2015 compared with 1.5 million in 2006.