California Special Commission Recommends Killing State Sales Taxes

A special state commission, the Commission on the 21st Century Economy, has come out with a set of radical proposals to reshape California's tax system, including getting rid of the sales tax. Various state politicians and special interest groups have already declared the ideas dead in the water. The heart of the proposals, from an L.A. Times account:

Under the plan, the state's current half-dozen income tax rates would be replaced by two—2.75% for those making up to $56,000 a year and 6.5% for those earning more. Sales and corporate taxes would be replaced by a single new business levy that would spread the burden—at a tax rate of about 4%—more broadly and would include service professions.

More details and background on this tax reform proposal, and the reasons it was seen as necessary, from me at my California news and politics blog "City of Angles."

Matt Welch in May on how the real problem with California state revenue is and remains insane spending levels.