CALIFORNIA TAXES HAVE RISEN THIS YEAR, and not surprisingly, they've also soared to near the top of the Capitol's policy agenda.
Democrats generally say the state's taxes are too low to support the level of public services Californians need and expect. Republicans argue that taxes are so high they stifle economic growth. And plenty of people from both parties or no party at all worry that the state's tax system simply is too volatile, sending the budget on a wild, cyclical roller-coaster ride.
Last year Gov. Arnold Schwarzenegger and legislative leaders appointed a bipartisan commission to examine the tax system and recommend changes.
That panel has now suggested a radical overhaul. The plan would reduce personal income taxes dramatically, eliminate the corporate income tax, kill most of the state sales tax and then seek to replace all that lost revenue with a completely new tax on business net receipts.
The plan has taken flack from all sides and may be dead on arrival in the Legislature. But it has sparked a discussion that almost certainly will continue into next year, if not beyond.
Today we take a look at this issue from several angles. On this page we have a piece from a Sacramento couple who own a small preschool business and say the commission's proposal would result in a massive tax hike for them and other small business owners, especially those who depend heavily on labor.
On page two you'll find a commentary by two members of the commission, one a Republican, one a Democrat, who support the plan. Another commissioner, who represents the business community, explains why he opposed it and refused to sign the commission report. And two left-leaning tax experts who oppose the plan weigh in on what they would do instead.
We hope this dialogue helps you to better understand what the debate is about and what the stakes are for Californians. And we hope you will join the Conversation by going to www.sacbee.com/conversation.
