12/01/2021
As the state was experiencing record revenue collection under the existing tax structure, state lawmakers considered raising annual taxes and fees by more than $236.4 billion in 2021, the California Tax Foundation reported today.
The foundation’s Tax and Fee Report tallies 74 proposals with higher taxes or fees estimated to cost Californians $1 million or more. Although the cost to taxpayers cannot be quantified for 43 of the measures, the remaining 31 represent a cumulative total of $236.4 billion in additional taxes and fees if all were approved.
The proposals were introduced despite the state’s reserves of more than $20.7 billion, a windfall of unexpected tax revenue (more than $11 billion above projections during the first four months of the 2021‑22 fiscal year alone), and an influx of $27 billion in federal COVID‑19 relief funding for the state and an additional $16 billion for local governments in California. The Legislative Analyst’s Office recently projected a state operating surplus of approximately $31 billion.
The Tax and Fee Report describes all of the proposals, provides revenue estimates, and gives the status of each measure as the final year of the two-year legislative session approaches.
https://www.caltax.org/foundation/reports/20211201-Tax-and-Fee-Report.pdf