https://blog.thomas-bray.com/tags/california/Recent content in California on Rabid CuriosityHugoen-usThomas BrayTue, 17 Mar 2026 11:20:00 -0500https://blog.thomas-bray.com/posts/public-finance-california/Tue, 17 Mar 2026 11:20:00 -0500https://blog.thomas-bray.com/posts/public-finance-california/<h2 id="californias-singular-scale">California&rsquo;s Singular Scale</h2> <p>California&rsquo;s economy is roughly the size of the United Kingdom&rsquo;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&rsquo;s public finance requires first setting aside the usual state-level frameworks—California operates at a scale where different dynamics apply.</p> <h2 id="revenue-structure-and-volatility">Revenue Structure and Volatility</h2> <p>California&rsquo;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.</p>