Topics

• Alternative Taxes
• Chokeholds on the Tax System
• Corporate Franchise Tax
• Introduction to CA's tax problems
• Personal Income Tax Weaknesses
• Property Tax
• Sales and Use Taxes
• Strategy and Accountability Needed
• Tax Administration
• Telecom Taxes

California's Tax Issues and Solutions

• 21st Century Taxation Blog - here.
• Testimony delivered to CA Assembly Revenue & Taxation Committee hearing on incentives for job creation and innovation, 12/5/11 held at San Jose State
• Testimony submitted to CA Assembly Revenue & Taxation Committee for 2/28/11 hearing on the California Use Tax Gap
• Testimony before CA Assembly Revenue & Taxation Committee on 1/13/2010 for informational hearing on alternatives to the COTCE recommendations (pdf).
• California Tax Problems - short summary (pdf).
• Commission on the 21st Century Economy:
  • How to Evaluate the COTCE Proposals, California Progress Report, 9/24/09
  • Sane Taxation?, The Press-Enterprise, 10/11/09
  • Information on business net receipts tax (BNRT) proposal
• Broadening the CA sales tax

1. Several Weaknesses Exist: An Introduction to Some of the Problems  (web)  (pdf) (podcast)

   1. Most of these weaknesses can be solved by fixing the tax base - they cannot be solved with a rate increase. A rate increase would make most of these problems worse.

      • California Tax Problems - a short summary (web) (pdf)

      • Revamp tax laws to support California spending, San Jose Mercury News 8/20/07 
        (examples of ways to improve California revenues as one way to address spending needs)

      • California Tax Changes: Math versus Strategy, California Progress Report, 12/5/08

      • Testimony before CA Assembly Revenue & Taxation Committee, 1/13/10

   2. Analysis of California's Tax System Using Criteria Established for the 21st Century Economy Commission (pdf) [coming soon]

2. Sales and Use Tax: Issues

   • Tax Base is Too Narrow (web) (pdf) (podcast)

   • Lower the sales tax - but reform what gets taxed, San Jose Mercury News, 7/24/11
   • Testimony before the California 21st Century Economy Commission, at UCLA, 2/12/09

• Powerpoint: "Considering a Broader Sales & Use Tax Base"

  Report: Sales and Use Tax Weakness & Possible Remedies: The Tax Base is Too Narrow and Should Be Broadened"   [updated version]

• Taxing Some Services Could Help if It's Fair and Simple, San Jose Mercury News, 6/29/08

• Taxing Digital Products - Let's Also Use the Technology to Modernize Collection, blog 6/23/08

• Testimony before the California Assembly Revenue & Taxation Committee, 4/7/08

• Obstacles to Taxing Services — Are They Insurmountable? AICPA Corporate Tax Insider, 2/28/08

• California's 20th Century Sales Tax  Los Angeles Times 7/18/07

• Download or pick up: Why is one tax-free?  San Francisco Chronicle 7/11/07

b.    Challenges in Collecting the Use Tax (web) (pdf) (podcast)

1. • Testimony submitted to CA Assembly Revenue & Taxation Committee for 2/28/11 hearing on the California Use Tax Gap

   • Use Tax Reality, California Progress Report, 3/23/09

   • The Practitioner’s Role in Use Tax Compliance, AICPA Tax Insider, 8/9/07

   • California's Use Tax Collection Challenges and Possible Remedies, California Tax Lawyer, Fall 2007 

c.     Pyramiding Nature of the Tax (web) (pdf)

 

d.      Nexus Uncertainty (web) (pdf)

• Nexus Confusion: Sales and Use Tax, AICPA Corporate Tax Insider, 9/27/07

1. Personal Income Tax Weaknesses

   1. The tax is too volatile  (web) (pdf)

      • 'Spending problem?' - some of it's hidden in our tax laws, San Francisco Chronicle, 2/10/08

      • Know New Taxes (a look at environmental taxes), San Francisco Chronicle, 9/19/07 (one possible partial solution)

   2. Complexity due to lack of conformity with federal rules, various special rules and not using simplification techniques  (web) (pdf)

   3. Too many costly and unnecessary tax breaks (web) (pdf) 

      • 'Spending problem?' - some of it's hidden in our tax laws, San Francisco Chronicle, 2/10/08

2. Corporate Franchise Tax Issues

   1. Conformity with the federal income tax is low  (web) (pdf)

   2. California's tax loopholes that aren't, San Diego Union Tribune, 7/11/08

   3. Looking for a Better State Business Tax, AICPA Corporate Taxation Insider, 10/29/09

3. Property Taxes Reform Considerations

   • Splitting the Roll   Real Estate Taxation, 3rd quarter 2004

4. Alternative Taxes

   • Know New Taxes (a look at environmental taxes), SF Chronicle, 9/19/07

   • Carbon taxes

5. Telecommunications Taxes (2003 policy brief by Prieger, Sexton and Nellen)

   • Taxes have not kept up with changes in technology 

   • State and local simplification is possible through coordination 

6. Tax Administration

   1. Tax agency coordination proposals [coming soon]

7. Strategy and Accountability Needed

   • A Tax Commission for California? How It Can Be Made to Work, California Progress Report, 7/27/08

   • California Tax Changes: Math versus Strategy, California Progress Report, 12/5/08

8. Chokeholds on the Tax System (budget restrictions, earmarking, etc.)

   • Don't link school spending to oil companies' profits, San Jose Mercury News, 3/21/08