By Chamber Business News
As the state House of Representatives prepares to take up debate on the state budget, legislators should keep in mind the following:
- A flatter income tax is better. It removes negative incentives that reduce productivity and investment.
- If the Legislature does nothing to blunt the negative impact of the nearly 78% income tax increase from Proposition 208’s new surtax, there will be a negative effect on small businesses and on the state’s ability to attract and grow both small and large businesses in the future.
- If the Legislature does nothing to change our tax code, state and local governments will still lose revenue. Proposition 208 has forced the state into an income tax structure that is uncompetitive.
We have long been proponents of a flatter income tax structure. If a state is going to impose an income tax, we believe a flat tax is the best system.
