Photo Illustration by Anne Wernikoff
BUDGET DECIDER: Making choices that impact millions
By Judy Lin and John Osborn D’Agostino
California lawmakers have passed a $215 billion budget filled with progressive eye-catchers such as health coverage for low-income young adults regardless of legal status, and expanded tax credits for the working poor. Tucked into the pages were a couple of new taxes, including a state penalty for people who go without health insurance and a phone bill fee to upgrade the 911 emergency system.
But what if you had the awesome power to tax and spend, charting a new course for California?
Would you eliminate the property tax caps of Proposition 13? How about reducing income taxes—and if so, for whom? Would you build a bullet train from north to south, or fund universal preschool?
We designed this interactive to improve your understanding of where taxes come from and where all that money goes. Let’s build your version of the Golden State!
Revenue
Personal Income Tax
California’s progressive income tax rates range from 1% to 13.3%. As a result, the rich contribute half of the state’s income tax revenue. Would you...
Sales Tax
The state imposes a 7.25% sales tax on manufactured goods with local governments adding on to the tax. It’s the slowest-growing pot because tax codes haven’t been updated to capture technological changes or the growth of services in the economy. Would you…
Source: CalChamber (link)
Property Tax
California’s property tax cap known as Proposition 13 has disproportionately benefited the wealthy and indirectly contributes to high housing costs. Would you...
Corporate Tax
Corporations pay anywhere from 1.5% to 10.84% depending on the type of business. Would you...
Oil Severance Tax
34 states tax oil and gas production. California is not among them. Would you...
Gas Tax
Drivers currently pay extra at the pump to fund roads, bridges and other repairs. Would you...
Source: Legislative Analyst’s Office (link)
Lottery
The lottery only generates 1.5% of public education funding. Still, a billion dollars is a billion dollars. Would you...
Source: California Lottery (link)
Obamacare: California edition
The Legislature is stepping in after the federal government repealed the individual mandate in the Affordable Care Act. California will require residents to carry health coverage or face a $695 yearly penalty. Would you...
Source: California Department of Finance (link)
911 Fee
California is upgrading its 911 emergency system from analog to digital. It plans to pay for it through an additional monthly fee on each phone line. Would you...
Source: California Department of Finance (link)
Rainy Day Fund
California was on the brink of becoming a failed state during the Great Recession and has learned to save for a rainy day. Would you…
Source: California Department of Finance (link)
Spending
High Speed Rail
An ambitious and massive rail project would connect California from San Diego to San Francisco via taxes on polluters under the state’s cap and trade program. Savings could only go to other clean energy projects, so forget using bullet train money to, say, house the homeless. Still, would you...
Source: Los Angeles Times (link)
Shelter the Homeless
California has 25% of the nation’s homeless population. That’s an estimated 130,000. Of course, a major driver is our lack of affordable housing. Would you...
Affordable Housing
An estimated 1.7 million low-income renters spend more than half of their income on housing. No wonder we have a housing crisis. Would you...
Source: Legislative Analyst’s Office (link)
Teacher Stimulus
From Los Angeles to Sacramento, teachers have gone on strike over pay fights and insufficient resources. Would you...
Source: CALmatters calculation based off Department of Education figures (link)
Early Learning
Child care and preschool not only allow parents to keep working but set children up for success. Would you...
Free College
Tuition at public and private colleges has skyrocketed, leaving students in debt. Would you...
Pay Pensions
Projections show the retirement promises made to state workers and teachers will continue to grow. Would you...
Health Access
California was quick to embrace the Affordable Care Act and is now charting a course toward universal health coverage. Would you...
Tax Credits For Working Poor
The governor is making the Earned Income Tax Credit his signature anti-poverty program by giving $1,000 for children under 6 and raising income eligibility to $30,000. Would you…
Source: Bill information (link)
$19.4 billion
surplus
Personal Income Tax
Sales Tax
Property Tax
Corporate Tax
Oil Severance Tax
Gas Tax
Lottery
Obamacare: California edition
911 Fee
Rainy Day Fund
High Speed Rail
Shelter the Homeless
Affordable Housing
Teacher Stimulus
Early Learning
Free College
Pay Pensions
Health Access
Tax Credits For Working Poor
