[lucysmom]

California relies on its income tax for government revenue. Every year, it keeps bringing in both record revenue and yet, it still spends more than it receives. A state sales tax would be a less volatile and more predictable revenue base for the government.

Umm - I live in California, we have a sales tax - 8.25% where I live. It is estimated that we would have to raise the sales tax by two percentage points and expand it to include goods and services that are now exempt from the sales tax to raise the same revenue. That would bring the tax at the register to over 40%.

The common wisdom is that higher tax rates, produce lower collections, what do you think a 40.25% sales tax would do to collections?

[RobFromGa]

How much higher would taxes be in Cali if they had to pay 30% or more FairTax to the Federal government on every salary, benefit and purchase of goods and services (except education)? 25% higher? more?