The California taxation system is dependent on income taxes paid on

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The California taxation system relies heavily on income taxes paid on capital gains from the sale of stock. This is because California has a large technology and entertainment industry, which results in many high-income individuals who earn their income from stock options and bonuses. Real estate valuations and savings deposit interest are taxed, but they are not the primary sources of revenue for the state. Interest paid on state bonds is not taxed but rather considered part of the state's expenses.

The California Taxation System Is Dependent on Income Taxes Paid