Bi-Partisan Tax Commission Will Improve State’s Tax Laws, Address Chronic Budget Problems
In addition to addressing California’s immediate budget challenges, the May Revise also ensures that California has the tools necessary to prevent future budget crises. One long-term approach to the state’s current budget challenges involves modernizing California’s tax system to ensure the state is less susceptible to revenue swings in the future while maintaining the amount of that revenue, its competitiveness and its attraction to employers and workers. To achieve this, the Governor will establish a bi-partisan commission of legislative and gubernatorial appointees to reexamine the state’s tax laws. This action complements the proposal Speaker Karen Bass has discussed and also builds on the Governor’s repeated calls for a more responsible and predictable revenue and budgeting system.
The Governor will issue an Executive Order to establish a bipartisan commission of legislative and gubernatorial appointees to modernize the state’s tax laws. The Tax Modernization Commission will make recommendations to bring our tax system into better alignment with our modern economy and to improve the state's economic competitiveness.
On The Record
California State Assembly Speaker Karen Bass: “Goal Of Commission Is Long-Term.” “If it provides some benefit in this budget year, that would be great. But the goal would be long term.” (George Skelton, “Next speaker's agenda is short but ambitious,” Los Angeles Times, 5/5/08)
Speaker Bass Believes In An Independent Tax Commission. “As speaker of the Assembly, I believe that having a top-notch independent commission to review what's wrong with our tax structure will be an important tool to build the kind of just, fair and prosperous society Californians deserve.” (Karen Bass, “Let's Talk Taxes,” Los Angeles Times, 5/13/08)
- Speaker Bass: “I Believe We Need An Answer.” “We have to ask the question of whether a tax structure that was established in the 1930s is sufficient to meet the needs of Californians in 2008. I believe we need an answer to that question that is developed outside the day-to-day give-and-take in the Legislature. That's why I will be establishing an independent commission to examine California's tax structure. This will be a bipartisan group of California's brightest, working together for one year to develop recommendations on how the Legislature can identify more consistent sources of revenue; 12 other states already have such groups.” (Karen Bass, “Let's Talk Taxes,” Los Angeles Times, 5/13/08)
Los Angeles Times: “An overhaul is past due for California's entire tax system because tax revenue, and its unpredictability, lie at the center of the state's perpetual budget floundering.” (Editorial, “Bottom-Line Questions,” Los Angeles Times, 4/15/08)
Los Angeles Times’ Bill Stall: State Needs Real Tax Reform To End This “Yo-Yo System.” “California needs real reform of its archaic and inefficient budget and tax system to put an end to this yo-yo system.” (Bill Stall, “Even Reagan Raised taxes,” Los Angeles Times, 2/26/08)
Sacramento Bee’s Dan Walters: “California Is Way Overdue For An Overhaul Of Its Impossibly Distorted Tax System.” (Dan Walters, “Governor's Tax Musings May Actually Make Sense,” Fresno Bee, 4/15/08)
