The biggest problem for California's people and businesses is that we are taxed way too much.  The endless cycle of tax and spend by our state government creates ever increasing tax rates and bigger and bigger budget deficits. We cannot tax our way into prosperity.  No government has ever made things better with higher and higher taxes.  It is time to stop this policy which eliminates wealth and move to a more fair tax system. 

 

California has the 3rd highest state income tax in the nation.  California has the highest state sales tax rate in the nation by far at 8.25%.  California corporate income tax rate is 3rd highest in the nation with a rate of 8.84%.  California ranks 13th in property taxes. For those home-owners with Mello Roos Taxes and other local special assessments, California ranks top.  California has the 4th highest capital gains tax 9.55%.California has the highest gasoline tax, averaging 65 cents/gallon.  California has one of the highest state vehicle license car taxes.

 

Our next Governor must lead the effort to reduce and eventually abolish the income tax in the same way California led the way to keep property tax rates low since the 70's with Prop 13.  Keeping tax rates low spurs economic growth, creates jobs, and increases wealth for our citizens.

 

We must cut our tax rates now so that we can make California business friendly again.  Too many jobs leave our state due to the high tax rates.  As we cut our income tax rates our economy will begin to grow and prosper again.  Eventually we can lead the nation into a more fair tax system and eliminate income taxes once and for all.

                                   

A Fair Tax system eliminates all income, capital gains, and property taxes.  It taxes consumption but not income.  It also has a prebate system to maintain a tax free status for those below the poverty level.

 

The Fair Tax will allow our GDP to grow, because instead of taxing people's production, we are taxing consumption. So businesses, corporations, me and you will be paying 0% of our income as a tax.  This will spur investment and job creation across our state.

 

Within months corporations would repatriate capital into the country and create good high paying jobs.  Even economists like Alan Greenspan agree that after a few months of passing such a system--not years or decades--we will already be bringing trillions of dollars back into our economy. This will result in a higher GDP, a higher standard of living, and higher revenue base to fund government operations. 

 

Many states already have systems similar to this like Florida and Texas that derive their revenues primarily from consumption taxes, it is time California followed.

 

As Governor I will push for the elimination of all income taxes in our state.  We must immediately begin a process to reduce income tax rates every year until they reach zero.  Our state will be a model for the rest of the country as a national Fair Tax policy will decentralize power from Washington, D.C, and return control back to individual states.  If you would like to find out more about a Fair Tax system I encourage you to review these You Tube presentations: Part One & Part Two

 

In 2010 let's begin the process to eliminate income taxes.  Vote for Naritelli on June 8, 2010 in the Republican Primary.