Labor costs, too, are on the rise. The construction industry unemployment rate, at 6.3% last month, has fallen back to its levels during the housing boom. On Tuesday, the Labor Department reported that the quits rate—the share of people leaving construction jobs voluntarily and a sign that they think they can get new jobs easily—stood at 2.5% in March, the highest since early 2008.
It was a long-standing pattern. For 45 years starting in 1960, around 40 to 50 percent of African Americans in Sacramento County owned their homes, census figures show. By the turn of the century, the black homeownership rate in Sacramento County was higher than the statewide average and higher than other California urban centers such as Los Angeles and San Diego.
California gives corporations billions of dollars in special tax breaks each year on the assumption that they will generate more job-creating investment.
However, state officials only occasionally check on whether these loopholes actually do what they are supposed to do, or just fatten corporate treasuries. In fact, a new nationwide study of how states manage their “incentives” says that California’s oversight is one of the weakest.
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.