Speaking of taxes

California's tax revenue numbers might not be horrible (see post below), but their boom-or-bust quality doesn't make for stable budgeting. So Gov. Arnold Schwarzenegger is calling for a special session of the Legislature to overhaul the tax system. From the LAT:

The income tax would be flattened from the current half-dozen rates to just two - a 2.75% levy on income up to $56,000 for a married couple, and 6.5% for taxable income exceeding that threshold. Critics have attacked the proposal as a giveaway to the rich, with millionaires on average paying $109,000 less. To offset the reduction in income tax, the commission called for a revolutionary new tax for business and consumers. The current retail sales and corporation taxes would be eliminated, replaced by a broader business tax that would tap practically every type of free enterprise, including service sector firms like lawyers and business consultants currently not hit by the sales tax.

Most all sides are finding fault with the proposal. Already. Guess that's what happens when special interests rule the roost.