Governor seeks to shift taxes to middle class
January 13, 2010
Sacramento observers believe Governor Arnold Schwarzenegger is embracing a tax reform system for California that includes a major shift in the tax burden from the rich to the middle class. [Oakland Tribune]
The strategy comes on the heels of a report released last September by the California Tax Commission’s “Report of the Commission on the 21st Century Economy.” One of the report’s major conclusions: The state can lessen the flucuations in personal income tax revenue by reducing the rates at the high end of the income spectrum.
Governor Schwarzenegger has called for such tax reform in recent speeches, pointing to the severe drop in tax revenues for the state. Supporters suggest that taxing the rich results in wide swings in tax revenue. Spreading the tax burden more evenly, they suggest, tax revenues would be more consistent.