A state "blue ribbon" panel is proposing to give more tax breaks to the wealthy, while slashing corporate taxes in order to solve California's continuing budget problems. If the panel's recommendations sound a bit loony, that should come as no surprise considering that its chairman, Gerald Parsky, is a Republican operative who nearly wrecked the successful UC pension system several years ago with an ill-thought-out scheme to privatize the management of it.
The state panel, which was appointed by Governor Schwarzenegger and the Legislature, recommends eliminating the corporate sales tax and reducing personal income taxes for the wealthy. The proposal also would eliminate tax deductions that help the middle class, from child care to health care. According to the Chron, the proposal also would eliminate the state sales tax, and replace it with a new tax on services, such as auto-repair labor costs.