The California Tax Reform Initiative

Imagine that California eliminates most taxes that discourage commerce and productive enterprise in California … such as the sales tax, corporate tax and property tax.

Such tax reform proposals are part of the Sec. of State initiative #1413, A.G. File No. 09-0051, which is the California Tax Reform Initiative now in circulation to try to obtain signatures.

The idea is to remove these taxes, and tax the rental value of California land instead. Economists say this will increase jobs, lower taxes for the majority of California residents and finally fill California state coffers. The new land tax is estimated to generate revenues between $130-160 billion annually.

The key idea is that the ownership of CA’s most valuable land is concentrated in the hands of foreigners and some larger corporations, who will be taxed to the hilt.

Will the idea work? Will it pass?

It’s too soon for even us to chime in until more people do more analysis.