All Things in Moderation

Here’s an interesting story in the LA Times this morning.  Oh yay, another confusing tax increase/decrease coming to a ballot initiative near you.  We’ll see how this one pans out as details are pretty sketchy at this point.


The Think Long Committee, which includes Google Chairman Eric Schmidt, former governors Gray DavisEli Broad, says its proposal would provide $5 billion more for public schools every year and billions for public universities and local governments. and Arnold Schwarzenegger and Los Angeles philanthropist


Although the group has prepared a report outlining its proposals, it has not taken the preliminary steps needed to place the ideas before voters. Members have not filed any potential initiatives with the state attorney general’s office or created a campaign committee to finance such an effort. A spokesman for Think Long said those moves would come in the next couple of weeks.


The group’s plan is based on a reshuffling of California’s tax system. It would lower the state’s personal income and sales tax rates and create a new levy of more than 5% on services that are not currently taxed, such as legal work or accounting.


Think Long spokesman Nathan Gardels said members want to “maintain California’s progressive tax system.” Under their proposal, families earning up to $45,000 a year would pay no state income tax, while those making up to $95,000 annually would pay 2%. This would lower some taxpayers’ obligations significantly.


The group also wants to double the current exemption for homeowners and renters on their state income tax and eliminate most other California income tax credits.

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