The Wall Street Journal praises a new plan to reform taxes in California. The plan has much to recommend it: a less progressive personal income tax, a lower top marginal rate, lower income tax payments for all individuals, and no corporate income tax. The plan also calls for replacing most of the sales tax with a new value-added tax (VAT) that will exclude business-to-business purchases. The VAT has proven far easier to raise most places where it has been tried because it gets embedded in the cost of goods, so raises some concern. But the overall approach is similar to the reform Roy Cordato has described and is a marked improvement on most of the ideas floating around North Carolina.
Read the whole California report for yourself here.
