Wednesday, September 02, 2009

Told Ya So

Some of the tax changes and other ideas under consideration by the Commission on the 21st Century Economy:

• Reduce personal income tax rates for all taxpayers. The plan would retain the current standard deduction, as well as deductions for mortgage interest, charitable giving and property taxes.

• Eliminate state general fund sales tax (base is 5 percent, although state has imposed a 1 percent temporary increase through June 2011).

• Eliminate corporate tax.

• Establish a business net receipts tax (value-added).

• Impose 18-cent per gallon excise tax increase on fuel to pay for roads, transit and "smart growth." Includes rebate for low-income drivers.

• Impose tax on oil drilling in California.

• Create tax resolution forum.

• Establish a strong rainy-day fund (would need voter OK).

• Impose "split-roll" concept that removes property tax protections for commercial and industrial property (would have to go to voters).

Of course all we'll get out of the commission and into law will be the VAT and weakened Prop 13 on businesses. SacBee has a story.

Commission web site.

Here's why what they are proposing won't work:


Peripheral Visionary said...

Those are all suggestions worth considering, but the hard reality is that if California wants to balance the budget, they need to start with expenses, not revenue.

Bill in NC said...

So state sales taxes are now into the double-digit range (8.25% here in formerly low-tax NC as of 9/1)

Will the feds really be able to slap another 15% on as a VAT/national sales tax?

Cobradriver said...

"Will the feds really be able to slap another 15% on as a VAT/national sales tax?"

Hey,by the way,as a 20 year mechanic I happen to know where you can get auto and truck repairs done at a resonable price.

Can you say underground economy?