Posted by BOE Member George Runner at 11:32 am on Apr 14, 2015 Comments Off on Revenue Report Dangerous in the Wrong Hands
At the request of the Senate Governance and Finance Committee,
the Board of Equalization’s Research and Statistics Section today
released a report showing
the State of California could reap up to $122.6 billion by imposing
sales and use tax on services.
The size and scope of California’s service-related industry is
mind-blowingly large, and the last thing overtaxed Californians
need is another tax. In fact, these numbers are dangerous in the
hands of legislators who want to raise taxes.
However, I hope this report stimulates conversation about how
taxes can be simpler, and how we can attract more jobs to our
state.
Although I strongly oppose Senate Bill 8 (Hertzberg), which
would impose a $10 billion tax increase on service industries, I am
open to considering a broader sales tax if it’s part of revenue
neutral tax reform, such as abolishing the Franchise Tax Board and
California’s income tax, along with other taxes that destroy
jobs.
I’ve called for dynamic economic modeling that would show the
benefits of such a change and look forward to being able to share
those results with you… Read More