Being the lefties they are the LA Times uses “accountants and lawyers” as examples of services that would be subject to taxation—things most people don’t use much. Left unsaid are all the things people use a lot—home repair, car repair, barbershops, gardeners, medical services, etc.
What makes you think ALL services would be included ? If the 5% rate was applied to all services it would amount to a $40B tax increase, not $10B.
This proposal’s purported intention is the same old vote-buying. Families making $45K paying NOTHING in income tax ? What is it about people that think government should be the one thing in life that’s “free” ?
Personally, I wish they WOULD extend the sales tax to ALL services as well as goods. At a 5% rate, it would make the Sales Tax generate $60B/yr. It would reduce the benefits of buying online and give local brick & mortar stores a boost. It would also allow the state Income Tax to be lowered to a flat 3% to generate $45B and eliminate the corporate Income Tax completely. That would be very pro-growth. Put a 50% tax rate on any government employee income greater than $100K and government pensions that exceed $50K.
Also: Nullify all state regulations and force them to start from scratch with business the priority. Require all school districts to offer vouchers for 50% of the per pupil cost they are spending. Require utilities and landlords to run credit and criminal background checks on applicants to scare away illegals.
It wouldn’t really take much to make California the best in the country again.