SACRAMENTO (KCBS)— With taxes due April 15th, a Sacramento watchdog group has come out with their annual report that finds California’s low-income earners are paying 10.5 percent of their income in state and local taxes while the wealthiest in the state are only paying 8.7 percent.

The report by California Budget & Policy Center (CBP) called ‘Who Pays Taxes in California?’ finds that the bottom fifth of California’s earners with annual incomes below $13,900 are bearing the brunt of paying into the tax system.

“Things are good for [the wealthy], but for the rest of California. It’s still kind of a struggle,” said CBP analyst William Chen.

For the wealthiest one-percent of families, their average income is $2 million, according to the report.

“The rich and the poor; they’re spending on different things. The poorest pay into basic needs and the richest are able to spend on things that aren’t subject to taxes, like savings and services,” Chen said.

The report cites Proposition 30, which California voters approved in 2012 and allowed a temporary sales tax increase and also added temporary personal income tax rates for wealthy Californians, as part of the reason why the system is skewed.

They add that Sacramento needs to do more to reverse what they call a regressive tax system, possibly by creating a California earned income tax credit and better targeting existing credits to low-income homes.

“We all have a stake in making sure our tax system is working for everyone,” Chen said.


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