Tuesday, September 29, 2009

CA Tax Panel to Recommend New Business Tax

As my home state’s economic woes continue, the California tax commission has been working on ways to increase revenue. Reports suggest the commission is about to recommend a new business tax that has “never been tried on a wide scale in the U.S.” They will reportedly recommend repealing state sales and corporate taxes then try the all-new business tax instead. Check out the following clip of an Associated Press article discussing the announcement.

A commission charged with reforming California's tax structure will recommend repealing the state sales and corporate taxes, flattening the income tax rate and taxing businesses in a way that has never been tried on a wide scale in the U.S.

The Commission on the 21st Century Economy is expected to submit a sweeping report to the governor and Legislature Tuesday after spending a year looking for ways to stabilize California's volatile tax system.

A draft copy of the report obtained by The Associated Press said the commission will recommend California change its personal income tax structure to reduce the burden on the wealthy.

It also recommends replacing the state sales and corporate taxes with a new business levy that taxes net receipts, in an attempt to tax the value of all goods and services produced by businesses in the state.

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