Re "State should get smart about its tax breaks" (Dan Morain, Jan. 9): Dan Morain urged eliminating the sales tax on equipment purchases of manufacturers. He's right, but did not go far enough. Why impose a fee on any business - manufacturing, agricultural, or service - for the costs of operating their business? We don't do that for income taxes. For those we we tax only the net take after expenses.
In 1998, when I chaired the Assembly committee on taxes, we took that lesson to heart and fashioned legislation to exempt purchases of high-tech equipment by post-production companies in the film industry. It's now law.
Let's restructure the sales tax: eliminate it on business purchases. Offset the lost revenue by another needed reform, extend the coverage of the sales tax to some services. No increase in total sales taxes, no decrease in state revenues, and most businesses in the state get a tax break.
Wally Knox, Los Angeles