Nope, this will not work. The Parsky Commission has released its proposal, and to put it mildly, it is not acceptable.
Here is what it contains, (H/t to Capitol Alert)
- A reduction in income taxes across the board, but the reduction will be most beneficial to upper income Californians.
- The elimination of the corporation tax
- The phasing out of the state portion of the sales tax (5%)
- A Business net receipts tax. It is a tax on all revenues less capital expenditures. It has some big loopholes
Arnold wants an up or down vote on this package, and I can tell you pretty much right now that there aren’t the votes for this. Business groups are already screaming about it, and you can be assured that the Left won’t be particularly happy. Chris Edley, the Dean of Boalt Hall (Berkeley’s law school) and John Cogan, a Hoover Fellow, want the Legislature to seriously consider the merits of the plan, and you know, do the job to which they won election by crafting policy. Arnold isn’t so into that.
Nonetheless, I can’t see how this survives the Legislature.