California Taxation of Physical Persons After the Covid Era

For many years California has been the most liberal State in terms of tax revenues. That happened because Silicon Valley has been here with some of the most prestigious companies in the world. These were producing much of the State’s income, and for that reason, only slight taxation of their world profits would give an endless money flaw for the Californians. A licensed tax attorney could know that this era has long gone. Today California is among the States that face the burden of deficit. That happened because inflation started to rise in the State, and prices began to get out of control during recent years. It’s not rare to see the housing bubble in Los Angeles and San Francisco, where most people cannot buy a single house if they don’t get a mortgage for at least 1 million USD. The pricing bubble has been evolving to such a point that it started blocking the real economy. People didn’t have any incentives to work and produce anymore since the hourly wage (especially for the low-skilled workers) couldn’t follow the cost of living evolution.