“How have California’s tax policies changed over time? Over the past three decades, the cost of funding state services has shifted from corporations to personal income tax filers. The Department of Finance estimates that personal income tax receipts will provide 51.5 percent of General Fund revenues in 2011-12, up from 35.4 percent in 1980-81. Corporate tax receipts are expected to provide 12.4 percent of General Fund revenues in 2010-11, down from 14.6 percent in 1980-81.
New, increased, and expanded corporate tax breaks and the 1996 corporate tax rate reduction are responsible for the decline in the share of state revenues provided by the corporate income tax. Additional corporate tax cuts included in the September 2008 and February 2009 budget agreements will result in a loss of nearly $2 billion per year when fully implemented.”
—The California Budget Project. California Teacher 65.1 (Sept-Oct. 2011): 8-9. Quote on page 9.