Working Together to Overhaul California’s Outdated Tax System
By State Controller Betty T. Yee
Taxes touch on every issue we face in California, from funding education to addressing our growing transportation needs.
Developed more than eight decades ago during a manufacturing-based economy, our tax system fails to generate dependable revenues or to keep pace with changes in the state’s economy. Our system leaves the state budget prey to boom-and-bust cycles, in turn disrupting funding of essential public services. As the state’s chief fiscal officer, I am responsible for managing cash flow in a time of continued revenue volatility. I know counties experience these dramatic revenue effects as well.
In June, along with my Council of Economic Advisors on Tax Reform, I published a first-of-its-kind report (“Comprehensive Tax Reform in California: A Contextual Framework”) that I hope will lead to wide-ranging public engagement in reforming California’s outdated and unreliable tax system. County governments are vital voices in the reform conversation.