This is silly. Just lower the sales tax from 7% to 3% but have it applied to all retail purchases including rents and other services. Today it only applies to 25% of spending. A3% rate would boost local businesses vs. online etailers, and the larger base would collect more total revenue. Enough more revenue that we could eliminate the state corporate tax entirely, making it more attractive to operate here. Of course, without wiping out 90% of the strangling regulations, nothing will be enough to bring back businesses that have already fled CA.
Yeah, because applying a 3% tax to an additional 75% of the economic activity in the state (effectively adding 9% to the oberall tax rate, give or take) will be good for the economy.
Not to mention adding 3% to the insane cost of living for people who rent because they can’t afford to own.
And I’m sure businesses will just lay back and enjoy the ride.
That’s just plain nuts.