Sunday, June 7, 2009

Schwarzenegger proposes 15% flat tax for California

California Governor Arnold Schwarzenegger would like to see a flat tax proposal from commission now studying an overhaul of the state’s tax system. He suggested a number of 15%. The flat tax idea is interesting, but if California needs 15% of their residents incomes to pay their bills, there needs to be some serious budget cutting first.
From the Los Angeles Times:
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.

1 comment:

Anonymous said...

Do they think californians are stupid? Currently, the califnia income tax rate varies from 1% to 9.3%. And they're proposing a flat income tax of 15%. Umm, that's a tax raise!