LAO discusses tax increase, decrease options

”Few topics are more challenging for policymakers than taxation,” LAO staff writes

California’s Legislative Analyst’s Office (LAO) has released a new report on various options to raise or lower taxes in the state: https://lao.ca.gov/Publications/Detail/5170

“The report proceeds in four sections,” LAO staff writes. “The opening section discusses our analytical approach and provides guidance on interpreting our findings. The other three sections detail various tax options. First, we examine tax increase options that would each raise between $1 billion to $3 billion per year. Next, recognizing that policymakers soon will need to grapple with the expiration of temporary income tax rates put in place by Proposition 55 (2016), we turn to options that raise around $10 billion to $15 billion per year. Finally, we look at options to lower taxes by $1 billion to $3 billion per year.”