Assembly Bill Calls for Flat Tax on Businesses, Personal Income

A bill establishing a flat tax on businesses and personal income in California has been introduced in the Assembly.

Under the new legislation, ACA 29 by Assemblyman Howard Kaloogian (R-Carlsbad), all existing state and local taxes would be eliminated and replaced with a 5.9% tax on net sales by businesses and on personal unadjusted gross income.

“The flat tax is fair, simple and equitable,” Kaloogian said. “This is an issue whose time has come. It’s time to rethink the entire structure of state and local taxes.”

ASSEMBLY

Committee Action

* Revolving Door: The Elections, Reapportionment and Constitutional Amendments Committee approved a bill (AB 1871) by Assemblywoman Kerry Mazzoni (D-Novato) prohibiting former state officials from representing clients in enforcement matters before their former agencies for a period of one year after they leave office. The bill was introduced to strengthen the state’s revolving-door law after former Fair Political Practices Commission Chairman Ben Davidian entered private law practice and began representing former Agriculture Secretary Henry J. Voss before the FPPC. A 4-0 vote sent the bill to the Appropriations Committee.

* Price Discrimination: The Consumer Protection, Governmental Efficiency and Economic Development Committee approved a bill (AB 1100) by Assemblywoman Jackie Speier (D-Burlingame) prohibiting merchants from charging women more than men for the same goods and services. A 7-4 vote sent the bill to the Appropriations Committee.

* Mountain Lions: The Water, Parks and Wildlife Committee rejected a bill (AB 117) by Assemblyman David Knowles (R-Placerville) that would have placed on the ballot the question of whether mountain lion hunting should continue to be banned. The measure received seven votes, one short of the number required for approval.

* Motorcycle Helmets: The Transportation Committee rejected a bill (AB 373) by Assemblyman Bill Morrow (R-Oceanside) repealing a state law requiring adult motorcycle riders to wear helmets, while still making them mandatory for riders under the age of 21. The vote was 9 to 7.

* Freeway: The Transportation Committee also rejected a bill (AB 498) by Assemblyman Paul Horcher (I-Diamond Bar) making it an infraction for a motorist to slow down to view a freeway automobile accident if a police officer decides it causes increased traffic congestion. A 13-1 vote was cast on the bill.

SENATE

Committee Action

* Gambling Commission: The Governmental Organization Committee approved a bill (SB 10) by state Sen. Quentin Kopp (I-San Francisco) to create a new state commission to regulate California’s rapidly growing card club industry. A 7-3 vote sent the bill to the Appropriations Committee.

* Lobbying Regulations: The Elections and Reapportionment Committee approved a bill (SB 524) by Kopp requiring public relations firms specializing in organizing mass letter and telephone campaigns to influence legislation to adhere to the same regulations as lobbyists. A 3-0 vote sent the bill to the Appropriations Committee.