Gov. Arnold Schwarzenegger has signed an executive order
creating a bipartisan commission that will recommend overhauls to
the state’s tax structure.
SACRAMENTO
Gov. Arnold Schwarzenegger has signed an executive order creating a bipartisan commission that will recommend overhauls to the state’s tax structure.
Schwarzenegger said Thursday during a signing ceremony in Los Angeles that the move is intended to help the state avoid extreme revenue swings. The state budget relies heavily on income taxes from the top 1 percent wage earners.
The governor said Wall Street losses have contributed to a 10 percent drop in anticipated tax revenue for the rest of this fiscal year, roughly $10 billion of the state’s $103.4 billion general fund.
Democratic Assembly Speaker Karen Bass, who advocated for the tax commission, said Massachusetts and other states have successfully updated their tax systems.
The panel – named the Commission on the 21st Century Economy – will consist of 12 members. Six will be appointed by the governor, three by the Assembly and three by the Senate.
The group is expected to return a report on or before April 15 – tax day.
