July 30, 2009: Schwarzenegger Calls for Special Session To “Fix” Tax System
ByOn the heels of closing the book on the states “latest and greatest” budget, Governor Schwarzenegger is calling for a special legislative session set for September to address California’s tax system.
The Legislators will be called on to act on the recommendations handed down in a report due September 20 from the 21st Century Economy commission. The bipartisan, 14 member commission was formed by Governor Schwarzenegger and Assembly Speaker Karen Bass in October 2008 to modernize and stabilize the states tax system. The goal of the commission is to:
- Establish 21st century tax structure that fits with state’s 21st century economy;
- Stabilize state revenues and reduce volatility;
- Promote the long-term economic prosperity of the state and its citizens;
- Improve California’s ability to successfully compete with other states and nations for jobs and investments;
- Reflect principles of sound tax policy including simplicity, competitiveness, efficiency, predictability, stability and ease of compliance and administration;
- Ensure that tax structure is fair and equitable.
The last one has me just a bit nervous. Generally when California politicians speak of making the tax structure “fair and equitable” that is code for raising taxes. Here is the Governor’s statement on calling the special session:
“For too long our broken tax system has taken Californians on an unwelcome rollercoaster ride. This Commission will help change that, and provide students, teachers, the elderly and the poor a more reliable funding stream. I assure all Californians that I will call on the full legislative body to immediately consider the Commission’s recommendations as soon as they are submitted.”
The last meeting scheduled by the commission on July 22 in Los Angeles was cancelled. The presentations from the meeting on July 16 are available on the commissions web site. The “Tax Structure Options” are worth a quick read through.










[...] 21st Century Economy Commission’s workshop have finally been announced. As you have read here and here, the commission was created by Governor Schwarzenegger and Speaker Karen Bass to [...]
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