Strengthening Job Market Helps PIT Revenues. The PIT is the state’s largest General Fund revenue source and grows over time largely in line with the main component of taxable personal income: the wages and salaries of Californians. The most recent data for 2010 indicate that wages and salaries made up 73 percent of California resident tax filers’ adjusted gross income (AGI) and accounted for 63 percent of PIT revenue. Accordingly, the strength of trends in the state’s job market plays a major role in the PIT’s overall growth rate. Consistent with the decline in employment in the state during 2008 and 2009 (illustrated.
