A new study finds that the poorest fifth of California's households is paying the most in state and local taxes. Matt Gardner with the Institute on Taxation and Economic Policy says that's partly because low-income families spend nearly everything they earn just to get by.
Gardner : Almost all of what you're seeing at the bottom there is the sales tax, state and local excise taxes on beer, cigarettes and tobacco and gasoline. As a share of income, these taxes hit low income taxes the hardest.
The report by the California Budget Project shows those making about $11,000 dollars a year spend almost 12 percent of their income on taxes. By comparison, the wealthiest one percent spend just over seven percent of their income on taxes. The latter's average income is $1.6 million.
However, the report's author acknowledges that the bulk of income taxes still come from the wealthier Californians.
