ance tax, fuel taxes, liquor, tobacco, and excise taxes, motor vehicle fees, and estate taxes. As in the New Jersey study, state taxes on corporations and out-of-state tourists are assumed to be borne by businesses and nonresidents and are therefore not included as part of tax burden on California's households.33

Based on Clune's estimates of the fiscal incidence of government spending and taxes, Table 6.3 summarizes revenues paid to, and services received from, local and state governments by California households. As with Table 6.2 for New Jersey, the analysis reports expenditures, revenues, and average fiscal balance of an average ("all") California household (T - E), for an average native household (TN - EN), and for an average immigrant-headed household (TM - EM), overall and by country of origin. Clune's expenditure and revenue estimates are for fiscal year 1995; the results in Table 6.3 have been adjusted upward by the national CPI-U index so as to reflect December 1996 dollars.

The estimates for California reported in Table 6.3, like those for New Jersey, reflect the assumption that the household sector as whole is in fiscal balance. Thus, the average fiscal burden computed for "all" households equals zero at the local and state levels. Within the household sector, however, we see that in California—as in New Jersey—there is a fiscal redistribution from native residents to immigrant households at both levels of government. When providing local services, the average native household contributes a fiscal surplus of $283 per household to fund a fiscal deficit of $831 per immigrant-headed household (see Table 6.3).34 When providing state services, the average native household contributes a fiscal surplus of $895 per household to cover an average negative fiscal balance of $2,632 per immigrant household (see Table 6.3).35 Comparing services received and revenues paid across native and immigrant households

33  

State income taxes and payroll taxes are assigned to households according to each household's eligible tax base. State and local sales taxes are allocated to households according to the household's consumption of the taxed goods; downward adjustments (= $72/immigrant household) for income remitted to country of origin are made. Property taxes are assumed to be fully borne by homeowners and renters and allocated according to property tax payments reported in the 1990 PUMS data base for California residents. Fuel taxes and motor vehicle fees, liquor and excise taxes, and tobacco taxes are allocated to households according to car ownership (fuel taxes and vehicle fees), the number of adults of legal drinking age (liquor taxes), and the number of adults over the age of 18 (tobacco taxes). Inheritance and estate taxes are allocated equally to households according to their status as native or 20 year residence.

34  

The contribution of $283 per native household to California local governments just offsets the local government deficit of $831 per immigrant household, so that the overall local government sector remains in balance: ($283/native households) ∙ (.746 native households/all households) ($83 /immigrant household) ∙ (.254 immigrant households/all households) = 0.

35  

The contribution of $895 per native household to California's state government just offsets the state government deficit of $2,632 per immigrant household, so that the overall state government sector remains in balance: ($895/native households) ∙ (.746 native households/all households) ($2,632/immigrant household) ∙ (.254 immigrant households/all households) = 0.



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