Legacies of historical racist policies and ongoing discrimination in areas such as education, employment, and housing have barred many Californians of color from economic opportunities. As a result, Californians of color — particularly Black, Latinx, and American Indian Californians — are less likely to have high incomes and to have built enough wealth to be able to weather periods of income loss, retire comfortably, and pass on wealth to their children. These barriers have also made Californians of color more likely to have experienced health and economic consequences of the COVID-19 crisis. One area policymakers should consider in efforts to address these inequities is the state’s tax and revenue policies. Although these policies may appear race-neutral, they can play a significant role in either worsening existing racial and ethnic income and wealth disparities or promoting greater equity for Californians. A policy need not be explicitly racist in order to have racially inequitable outcomes.1 Because many current state tax policies privilege Californians with higher incomes and wealth, they widen existing racial inequities. Policymakers can also use tax policy as a tool to promote racial equity, both by making the tax code itself more equitable, and by raising revenue to invest in the social and economic well-being of Californians of color.
Resource Category: Economics (CA)
San Francisco Entrepreneurs of Color Fund
San Francisco Entrepreneurs of Color Fund: Creating a Continuum of Capital and Consulting The Aspen Institute First published October 2020 Structural inequities—both historical and current—have created barriers for entrepreneurs of color to build wealth and grow their businesses. The San Francisco Entrepreneurs of Color Fund (SFEOCF) seeks to address these inequities by creating a more
Micro Businesses Create Meaningful Jobs
The Inland Empire Women’s Business Center and the Coachella Valley Women’s Center conducted a study of their clients to learn more about what helps business owners become employers, creating new jobs for the region. The study also examined the types of jobs provided by micro-businesses and the wages and benefits offered. They discovered that micro-business jobs are often close to home, are flexible to accommodate caregiving and educational pursuits and are a career path.
2020 Small Biz Profiles for CA Congressional Districts
Each profile focuses on the impact of small businesses in 436 congressional districts. Within, readers can find the congressional district’s total number of small employers and their industry breakout, plus the number of workers employed and payroll expended by small businesses. Additionally, the profiles provide a map showing the total number and distribution of self-employed workers across the district.
California 2020 Small Business Profile
In the fourth quarter of 2019, California grew at an annual rate of 2.2%, which was faster than the overall US growth rate of 2.1%. California’s 2019 overall growth rate of 2.6% was down from the 2018 rate of 4.3%. (Source: BEA)
In April 2020, the unemployment rate was 15.5%, up from 4.2% in April 2019. This was above the April 2020 national unemployment rate of 14.7%. (Source: CPS)
COVID-19 California Small Business Poll
The poll, conducted by Chesapeake Beach Consulting for Small Business Majority, surveyed California small business owners between April 7 and 10, 2020. The survey sheds light on a shocking rate of business closures, as well as small business owners’ views on proposals that can help ensure they are able to reopen and recover once the crisis is over.
Federal Fiscal Relief and COVID-19
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 and provides the largest amount of fiscal relief to date – approximately $2 trillion. The CARES Act includes one-time cash rebates for low- and middle-income households; additional support for unemployment benefits; loans for small businesses; direct funding for states, local governments, and tribal communities; funds changes to food assistance in the Families First legislation; an array of additional health care supports; and some additional support for human services, housing and homelessness, and student debt relief. While this analysis will focus on the relief and assistance summarized above, the CARES Act also includes $500 billion in loans and other investment for businesses and a series of tax provisions that primarily will primarily benefit large corporations and higher-income households.
California’s Nonprofit Sector 2019
California’s nonprofits bring more than $40 billion into California each year from out-of-state sources, and one in every 14 California jobs is at a nonprofit.
CalSavers: 2019 Highlights
As we begin 2020 focused on major program growth, we’re proud to offer these highlights of CalSavers’ historic first year of active participation. In 2019, we saw our first pilot saver contributions on January 2 nd; welcomed our new board chair State Treasurer Fiona Ma on January 7th; fully launched the program statewide on July 1st; supported our early savers in amassing $1.4 million; and made many program enhancements along the way.
Causes Count – Sneak Peek
The nonprofit sector is a powerful economic engine in California, especially when it comes to employment and wages. The nonprofit industry employs more than 1.2 million Californians and, in 2016, paid a total of $74 Billion in wages.