Taxing Services: A Step in the Right Direction

Much noise has been made over the years about California’s unfriendly tax environment. But an ongoing mantra at Beacon Economics is that California is not so much a ‘high’ tax state as a ‘dumb’ tax state. In other words, it is the structure of revenues that creates the problem, not simply the quantity being collected. This is important because it suggests that if we make certain logical changes to the structure of taxes in the state, it could simultaneously make California more business friendly while helping to cure the long-term deficit issues we still face – despite the current ‘balanced’ budget.