California

California’s Singular Scale California’s economy is roughly the size of the United Kingdom’s. Its state government collects more revenue than most countries. Its fiscal decisions ripple through national markets for municipal bonds, healthcare, and education. Analyzing California’s public finance requires first setting aside the usual state-level frameworks—California operates at a scale where different dynamics apply. Revenue Structure and Volatility California’s defining fiscal characteristic is not its level of taxation but its structure of taxation—specifically, its extraordinary dependence on personal income taxes from high earners. ...