The state government's largest revenue source, the personal income tax, is much more volatile than "personal income," one key economic statistic that measures the overall size of the economy.
Venture capital investments play a key role in financing new technology firms. California--especially the Bay Area--receives a very large share of such investments.
Most months, we will provide updates on California state tax revenue collections. These updates will come in several waves as information becomes available. In this post, we discuss November 2014 personal and corporate income tax collections.
Incomes are greater for California households than in the rest of the U.S. Incomes are more spread out as well, in that there is a larger gap between high-income and very low-income households.
We are launching this blog at the same time we release this year's edition of CalFacts. In so doing, we can highlight (and, in some cases, expand upon) CalFacts entries concerning California's economy and taxes.
The 2007-2009 recession hit California very hard. Only recently—in mid 2014—did California return to the number of jobs it had before the recession.