Revenue Report Dangerous in the Wrong Hands
At the request of the Senate Governance and Finance Committee, the Board of Equalization’s Research and Statistics Section today released a report showing the State of California could reap up to $122.6 billion by imposing sales and use tax on services.
The size and scope of California’s service-related industry is mind-blowingly large, and the last thing overtaxed Californians need is another tax. In fact, these numbers are dangerous in the hands of legislators who want to raise taxes.
However, I hope this report stimulates conversation about how taxes can be simpler, and how we can attract more jobs to our state.
Although I strongly oppose Senate Bill 8 (Hertzberg), which would impose a $10 billion tax increase on service industries, I am open to considering a broader sales tax if it’s part of revenue neutral tax reform, such as abolishing the Franchise Tax Board and California’s income tax, along with other taxes that destroy jobs.
I’ve called for dynamic economic modeling that would show the benefits of such a change and look forward to being able to share those results with you… Read More