A lot of that is because in California capital gains are taxed as income; the set of people who have meaningful capital gains in a given year is small (a core o

A lot of that is because in California capital gains are taxed as income; the set of people who have meaningful capital gains in a given year is small (a core of people in that set every year, and another set who are in it some years due to infrequent sales of assets like houses, businesses, major equity stakes from stock grants or options, etc.)