Posted on 06/05/2009 9:03:04 PM PDT by Kellis91789
Could the flat tax come to California? Gov. Arnold Schwarzenegger said today that he would like to see such “radical” proposals come out of a commission now studying an overhaul of the state’s tax system. The governor told the editorial board of the Sacramento Bee that he hoped the commission would not be afraid to propose something like “a 15% straight tax.” “That’s the kind of radical, daring kind of a proposal that I want to see on the table so we can look at it and say, ‘Oh, let’s study this, maybe that is the way to go,’ ” Schwarzenegger said during the discussion, which was webcast. The current system, based on highly unstable income tax revenue that fluctuates with the economy, “doesn’t work,” Schwarzenegger said. Advocates of a flat tax, which applies a single tax rate to all income, say it increases compliance with the tax codes because it is so simple and easy to understand. But opponents dislike that it taxes the wealthy at the same rates as the poor. Steve Forbes and Jerry Brown both pushed for it during their presidential campaigns. Schwarzenegger said he was concerned that the commission might be too timid in what it suggests and rule things out in advance thinking that either Democrats or Republicans would object. “I hope and I pray that they don’t think they have to make a political decision,” he said.
(Excerpt) Read more at latimesblogs.latimes.com ...
We'd be much better off extending the existing Sales Tax rate to all goods and services -- 6% at the State level on 1.1T annual consumption would provide $66B/yr tax revenue -- and a 4% Flat Tax on Income would provide another $48B. The state will just have to cut spending so it can survive on a mere $114B/yr.
Plus, open offshore drilling and collect fees.
In California, God wants 10%, the state wants up to 15%, and the feds get up to 40%. Someone (the citizens) is/are getting screwed.
/johnny
I think so. You have to target the poor mexicans who democrats say cant ‘afford’ to pay. The progressive income tax has created a magnet for those who demand.
Stupid RINO...
Why not just do a sintax? In California, if they tax abortion, gay sex and cocaine they’d probably run the budget in the black.
I thought he was a socialist, but I see the big picture now.
Can’t arnie just go away?
The feds get 28% tax plus 15.3% ss and add 15% flat ca tax,plus ca sales tax, dmv tax, property tx, mill tax, and on and on and on and on. Gee, this is getting kind of expensive.
Sin taxes are just a way to ADD new nanny-state spending programs. Later, when the “sinners” cut back, or switch to different sins, or leave the tax jurisdiction, the new spending program remains but tax revenue has dried up. Then they have to suck money from the general fund and raise general taxes.
Sin taxes are a sure road to more nanny-state programs, therefor I can’t support them.
According to a link at the article, opening offshore drilling would only yield $110 million/yr.
That’s less than a drop in the bucket. Still ought to do it, but it doesn’t appear to be much of a revenue source for a state that is burning through over $100 BILLION each year.
This is the bit of willfull ignorance of history that is so astonishing.
CA has already TRIED to untax those who can’t “afford” to pay and squeeze the people who “can afford” to pay. The result is clear and undeniable — the targeted “rich” have fled and the favored “poor” have streamed in.
Maybe we should take a page from the Global Warming playbbok and start referring to the people who believe in progressive taxation as “Deniers”.
“A flat tax on income of 15% ? Clearly, somebody can’t do basic math. The “progressive” rate for the top bracket in CA is “only” 9.3% today and that is already enough to drive the wealth out of the state.”
This guy makes me pine for Gray Davis!!
He proposed to cut 5000 of the state’s 250,000 employees. That’s a lousy 2% and he makes it sound like a sacrifice!!! I’m sure you could cut 10% across the board, or reduce salaries by 10%) and nobody would notice. And I would cut the legislature session in half, including their salaries.
There’s nothing worse than a “hard working legislature”.
Or as P. J. O'Rourke calls it, the "Circumcision Principle." You can cut 10% off the top of ANYTHING.
bookmark
Nearly all of the billions of dollars in cuts the administration has proposed would affect programs for poor Californians...
“Government doesn’t provide services to rich people,” Mike Genest, the state’s finance director, said on a conference call with reporters on Friday. “It doesn’t even really provide services to the middle class.” He added: “You have to cut where the money is.”
If 10 percent is good enough for Jesus, why it ought to be good enough for uncle sam. When I saw straight tax mentioned, I thought cali has really gone ahead and did it now!
State flat taxes... County flat taxes... City flat taxes... Federal flat taxes... DMV flat taxes... Import/Export flat taxes...
And with the current crop of goons in office, all of them would probably be around 15% each. That adds up fast.
The real answer is abolishing all current taxation nationwide (including those taxes they refuse to admit are taxes), and setting up a single, nationwide, constitutionally-fixed flat retail-only sales tax of 3%, with the feds getting 1%, the state of origin getting 1%, and the city/county of origin evenly splitting the last 1%.
I know. Our current crop of elected goons would never go for anything like this. But bringing it up and talking about it now is a good way to start finding good candidates to replace them with.
IMO, the problem remains on the spending side of the equation. Whatever you tax, under whatever method, Sacramento will spend 110%, or 120%, of that.
As to extending the existing sales tax rate to all goods and services, I'm not a fan. They have killed the aerospace industry in California, then manufacturing and farming. If they implement this, effectively double taxing the services industries, they'll price themselves out of the market on many services. Tourists will go elsewhere. Banking services, CPAs, and attorneys can be hired from other states. Entertainment and luxury activities will become less popular. Etc.
I think the spending addicts in Sacramento need to clearly articulate what their objective is. In this case, they say it is to come up with a revenue system that is less volatile. They have not said it is to come up with a system that taxes more. At the same time, Arnold rails about the budget system being "broken." That's a bunch of hogwash, IMO. They need to look long and hard at the reasons the revenue streams appear to be so volatile. I think much of the decline is caused by correcting the prior years accounting gimmicks. Arnold came into office and offered a "tax amnesty" program, effectively accelerating revenues that would be paid future years. At the same time, pumping up the home sales with easy mortgages made property taxes soar. The decline we are experiencing is bringing us back down to reality, not the artificial levels that were created by politicians.
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