California Governor’s proposal on new taxes

Governor Arnold Schwarzenegger has released his new tax proposal. It would apply a 3% sales tax to all services. Yesterday, a joint committee of the senate and assembly revenue and taxation committees held an informational hearing to review the proposal. Pat Moran from Aaron Read & Associates testified in opposition on behalf of the California Alliance for Golf. Several other industries also expressed their concerns. The committee was not terribly excited about making this change. Democrats do not see much to gain because the proposal is designed to be revenue neutral and democrats and republicans are both concerned how it will affect the industries subject to the new tax.

Click here to view the full proposal