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| Schwarzenegger suggests state consider flat tax |
| 2009-06-06 |
| 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.” Maybe if you eliminated all other taxes. “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. I dunno. I think of it as sort of an incentive for the politicians to keep the economy humming rather than drive it into the ground with insane pro-illegal immigration policies and the like. 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. Or the poor at the same rate as the wealthy. You decide. Either way, I've heard that the poor don't pay taxes and that the wealthy don't pay taxes. I'm so confused. Steve Forbes and Jerry Brown both pushed for it during their presidential campaigns. Musta pi$$ed off the Accountants' Union or something. 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. Arnold, worrying about it won't change anything. Apparently not even Californian voters get it. After all, how can they be overdrawn if they still have checks left in their checkbook, right? I'm sure someone will find some money somewhere! Maybe California could start investing in some of their lottery tickets! |
| Posted by:gorb |
| #16 The problem in California is the State government is dominated by big spending democrats and the Republicans are totally marginalized. Its a really good thing we don't have the same problem at the national level. /snark |
| Posted by: rjschwarz 2009-06-06 19:52 |
| #15 Gov at all levels has forgotten it is "Gov of the PEOPLE FOR THE PEOPLE AND BY THE PEOPLE". Instead the officials just look at us all as peasants to lord it over. |
| Posted by: 3dc 2009-06-06 15:19 |
| #14 But opponents dislike that it taxes the wealthy at the same rates as the poor. The oath the Supreme Court justices take vows to uphold the law and treat rich and poor alike. Doesn't taxation fall under this principle? |
| Posted by: Lumpy Elmoluck5091 2009-06-06 13:52 |
| #13 Property Taxes are best as revenue increases with improvements to the area. But then I am a Georgist. |
| Posted by: Bright Pebbles 2009-06-06 13:31 |
| #12 Woe is me. I still have to live here. Most of the above comments ring true to me. I especially like OldSpook's comment about bailing faster instead of fixing the hole. But then, how would the donks keep getting reelected unless they spent that money to keep the unions and the illegal aliens happy? |
| Posted by: Abu Uluque 2009-06-06 12:46 |
| #11 Correct SW. The unions castrated Arnold some years back during a special election. Ever since, he's been their jail-cell bitch. All the while, companies and their jobs continue to leave. We no longer have any Fortune 500 companies that call CA homebase. It's been that way for a while, and CA still continues to spend without any consideration for revenue. The Democrats have owned Sacramento for decades and this is the result. |
| Posted by: Rex Mundi 2009-06-06 12:27 |
| #10 I like your metaphor, Old Spook. California needs Marine Tex, not bigger bilge pumps. |
| Posted by: Alaska Paul at Mare Island, CA 2009-06-06 12:24 |
| #9 Steve, Arnold overreached, and badly, when he actually tried to take on some of CA's problems. He had, I think, 5 initiatives that first year. They all lost. He should have done one or two at most. Since then he's pretty much given up. The public pension obligations are a farce. They basically tell those employees that they never need to save anything for their retirement. Sorry, that model is not going to work any more. It is time to rip up those contracts and start over. |
| Posted by: remoteman 2009-06-06 12:21 |
| #8 I read somewhere (no link, sorry) that if over the past 20 years Laficornia had held its spending increases to match the inflation rate plus the rate of population growth, they'd have a budget surplus today. The problem, pure and simple, is that they're spending far beyond their means. No juggling of the tax code is going to fix that. They can implement a 15% flat tax but in a year or two it will be 17%. Then 20%. Then 22%. People with skills and money will leave. Businesses that can leave will do so. Someone has to get the public employee unions and the various special interests under control. I thought that someone was Arnold but clearly I was wrong. |
| Posted by: Steve White 2009-06-06 10:33 |
| #7 You're talking about bailing faster when you should be talking about fixing the hole in the boat. |
| Posted by: OldSpook 2009-06-06 09:35 |
| #6 He misspoke. He meant a new tax that would leave 15% for the |
| Posted by: AlmostAnonymous5839 2009-06-06 09:35 |
| #5 Never mind the fact they are leaving California by the tens of thousands. If I were a Governor, I would turn my state into the Monaco in the Poconos. Low top tax rates. Fat Cats are welcome, just bring your corporations with you. Even high stakes gambling, if you are rich and dumb enough. I guarantee a surplus in a few years. So much so that armed border controls would have to implemented to keep Socialist parasites the hell out. |
| Posted by: ed 2009-06-06 09:28 |
| #4 Going from a 10% graduated to a 15% flat tax? I Spidey Sense ulterior motives that the peasants aren't being told about. Balance the CA Budget Let's begin w/ a simple first step. Stop giving money to illegal aliens - $5 billion. Oops, that's not one of the options. Am I detecting some bias in the LA Times budget balancing game? |
| Posted by: ed 2009-06-06 09:22 |
| #3 But opponents dislike that it taxes the wealthy at the same rates as the poor. But of couse! "Equality" has never applied to the wealthy. Why begin now? Never mind the fact they are leaving California by the tens of thousands. They are wealthy, but not stupid. |
| Posted by: Besoeker 2009-06-06 08:55 |
| #2 California likes to call itself "a model" for the rest of the nation; without any sense of irony or self-awareness, of course. When the guvenator calls a tax radical, and it sounds like the EU VAT, it doubtless has some appeal to the state's egoiste airheads. |
| Posted by: regular joe 2009-06-06 08:09 |
| #1 Government spending, in California and elsewhere, has been increasing in both absolute terms and as a percentage of the economic product for a long time. It won't be that long until even a flat tax of 100% won't pay the bills. And a property tax of 100% won't help forever either. Since most government spending seems to be locked in, what happens when the spend exceeds the total economic value of the system? It seems like that's where we are heading. |
| Posted by: Glenmore 2009-06-06 07:41 |