According to a recent study by the Institute on Taxation and Economic Policy, the largest profitable corporations from 2018 through 2022 paid an average effective federal income tax rate of just 14.1% during this five-year period — almost a third less than the statutory rate of 21%. In California, Budget Center research highlights that corporations pay far less of their California income in state taxes than a generation ago.
Meanwhile, corporate profits in California have skyrocketed, reaching $368 billion in 2021 alone — a staggering 155% increase since 2002, when adjusted for inflation. Contrastingly, the average full-time, year-round worker in California has only seen a 13% increase in earnings during the same timeframe after accounting for inflation. | 