The think tank Institute on Taxation and Economic Policy (ITEP) considers property tax caps like Proposition 13 poorly targeted and instead advocates "circuit breaker" caps or homestead exemptions to levy property taxes based on ability to pay; yet in 2018, ITEP ranked California's tax code as the most progressive in the United States, in part due to its marginal income and capital gains rates. Since the wealthy usually own more "intangible" assets like stocks, bonds, or business equity, which are exempt from property taxes, ITEP says regressive state tax distributions that rely on property taxes can worsen inequality. According to ITEP, of all US states in 2018, California's tax code reduced inequality the most.