Attorney General No.

SA95RF0042

Secretary of State No.

698

Description

FLAT INCOME TAX. OTHER TAXES. REPEAL. INITIATIVE CONSTITUTIONAL AMENDMENT. Replaces existing income taxes with a flat tax on personal and business income at a single percentage rate set by Legislature. Prohibits other taxes except property tax, gross premiums tax, unemployment insurance tax, inheritance tax, and excise taxes on alcoholic beverages, cigarettes and tobacco products and horse racing. Limits local taxes to property tax and surtax on state flat tax. Authorizes limited deductions from income subject to flat taxes. Two-thirds of Legislature may adjust flat tax rate. Requires approval of local surtax by 2/3 of governing agency and 2/3 of voters. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The overall impact could be ongoing losses of several billion dollars to state and/or local governments, largely due to the measure's elimination of many taxes. However, the actual impact would depend on actions taken by the Legislature and the voters to offset these losses, principally the level of new flax tax and surtax rates.

Proponents

Arthur Betz Laffer, Victor Antonio Canto, Howard Kaloogian C/O: Richard D. Martland Nielsen, Merksamer, Parrinello, Mueller & Naylor, 770 L Street, Suite 800, Sacramento, Ca 95814 (916) 446-6752 (916) 446-6106

Date

1-3-1996

Document Type

Initiative

Qualified

Failed to Qualify

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