The Associated Press: Calif. panel set to recommend major tax overhaul:
"According to a draft of the plan, the state's personal income tax structure would be flattened and taxes on the wealthy would be reduced. The state sales and corporate taxes would be replaced with a new business levy that taxes net receipts.
The commission is recommending a simpler income tax to replace California's more progressive structure, in which people who make more, pay more — up to 10.55 percent for millionaires. The commission is recommending just two rates: 2.75 percent for individuals making up to $28,000 a year and couples making $56,000, and 6.5 percent for those making more."
"According to a draft of the plan, the state's personal income tax structure would be flattened and taxes on the wealthy would be reduced. The state sales and corporate taxes would be replaced with a new business levy that taxes net receipts.
The commission is recommending a simpler income tax to replace California's more progressive structure, in which people who make more, pay more — up to 10.55 percent for millionaires. The commission is recommending just two rates: 2.75 percent for individuals making up to $28,000 a year and couples making $56,000, and 6.5 percent for those making more."
