Monday, June 8, 2009

Governor Schwarzenegger's Radical Flat Tax in California

California is bankrupt, but Governor Schwarzenegger has a radical idea.

The California Legislature has no ideas, but Governor Schwarzenegger has a thoughtful idea.

Voters rejected new taxes, tax increases, tax borrowings, and tax extensions, but the Governor Schwarzenegger has a course reversing idea.

The legislators agree that taxes are off the table as California is about to shatter the social contract, but old habits die hard as some legislators wish to impose a $.25/ bag tax on plastic bags, add a $1.50/pack tax on cigarettes, and tax marijuana, but Governor Schwarzenegger has an taxing idea.

80-90% of California’s budget is non-discretionary, including federal mandates, state mandates, and voter improved initiatives, but Governor Schwarzenegger has an out of the box idea.

No more legislative stalemates with Governor Schwarzenegger’s cutting edge idea to cut the Gordian Knot.

Caught between liberal Democrats and conservative Republicans, public employee unions and employers, Governor Schwarzenegger has a trifurcating idea.

Some may be wed to the failed policies of the past, but not with Governor Schwarzenegger’s visionary idea.

Some want to call a constitutional convention to change the California Constitution, but Governor Schwarzenegger has a incisive idea.

If California leads the nation, then Governor Schwarzenegger has a universal idea to forever change state finances.

Confused and befuddled by the federal and state income tax codes, Governor Schwarzenegger has a simplifying idea.

Long discussed, the focus of arcane academic seminars and symposia, the subject of editorials, but never implemented until now, a favorite of Republicans, and the essence of Doric simplicity, the non-academic Governor Schwarzenegger proposes a flat tax for California.

Last Friday he suggested to the Sacramento Bee that the special committee studying the California taxation conundrum consider all ideas, including, he emphasized, a flat tax.

Admittedly the tax is wholly regressive, but is simplicity incarnate. Simplicity is its virtue.

Admittedly the tax is wholly regressive, but applies equally to all. Fairness is its virtue.

Admittedly the tax is wholly regressive, but the Democrats might like Governor Schwarzenegger’s radical idea, especially after they add low income exclusions.

The Governor has proposed a rate of 15%, which matches the public opinion favorability ratings of the legislature.

Last time I checked my math 15% of 0 is still 0.

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