CALIFORNIA BRIEFING / LOS ANGELES
Gov. Arnold Schwarzenegger said Friday that he would like to see “radical” proposals such as a flat income tax from a commission studying an overhaul of California’s tax system.
The governor told the editorial board of the Sacramento Bee that he hoped the commission would not be afraid to propose something like “a 15% straight tax.”
“That’s the kind of radical, daring proposal that I want to see on the table so we can look at it and say, ‘Oh, let’s study this. Maybe that is the way to go,’ ” Schwarzenegger said.
The state’s existing system, based on income tax revenue that fluctuates with the economy, “doesn’t work,” the governor said.
Advocates of a flat tax, which applies a single tax rate to all income, say it increases compliance with tax codes because it is simple.
Opponents dislike that it taxes the wealthy at the same rate as the poor. Steve Forbes and Jerry Brown pushed for it in unsuccessful presidential campaigns.
-- Michael Rothfeld
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