Open Policy Discussion

Living within Our Means

by | Feb 5, 2025 | California Taxes, Economic Opportunity

California should spend no more than it raises in taxes (except for long-range infrastructure projects suitable for bonds). Further, California should adhere to a policy of not raising taxes, barring a true (and rare) emergency. State government should budget based on existing taxes, rather than proposing increased expenditures fueled by increased taxes. The natural growth of the state’s revenue, as our population and economy grow, is enough for our state’s reasonable spending needs. We have to learn to live within our means. Others are constantly imagining new spending programs and proposing higher taxes to pay for them. It requires discipline to spend no more than we have, and a respect for the fact that the government doesn’t own the revenue it collects—the people do.

Comparative State Tax Burdens:

State and Local Taxes

  • California – 11.4% (#4)
  • NY – 12.6% (#1)
  • NJ – 12.3% (#2)
  • AZ – 8.9% (#34)
  • TX – 7.5% (#47)

Property Taxes (average percent of market value)

  • California – 0.81% (#34)
  • NY – 1.64% (#11)
  • NJ – 2.38% (#1)
  • AZ – 0.80% (#36)
  • TX – 1.90% (#6)

Highest-Bracket Income Tax

  • California – 13.3 (#1)
  • NY – 8.82% (#8)
  • NJ – 8.93% (#6)
  • AZ – 4.54% (#40)
  • TX – 0 (#51)

Gas Tax (cents per gallon)

  • California – 53.5 (#1)
  • New York – 42.64 (#3)
  • NJ – 14.50 (#49)
  • AZ – 19.00 (#43)
  • TX – 20.00 (#42)

Income Tax at $50,000

  • California – 4.34%
  • NY – 5.46%
  • NJ – 2.54%
  • AZ – 3.06%
  • TX – 0

Sales Tax

  • California – 7.5% (#1)
  • NY – 4.0% (#38)
  • NJ – 7.0% (#2)
  • AZ – 5.6% (#28)
  • TX – 6.25% (#12)

Sources: Tax Foundation, Forbes, American Petroleum Institute


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