Schwarzenegger seeks overhaul of state tax system – The governor calls a special session of the Legislature to consider a plan to cut the number of income tax brackets and replace retail sales and corporation taxes with a new business tax.

http://www.latimes.com/news/local/la-me-taxes30-2009sep30,0,682850.story?track=rss

Supporters say those proposals would reduce revenue volatility and simplify the system, but critics complain that they would shift billions of dollars in taxes from the wealthy to the middle class.

“Tax cuts for the rich would only serve to exacerbate the income gap,” said Jean Ross, executive director of the California Budget Project, a Sacramento-based nonprofit that advocates for low- and middle-income people. “I don’t think that is in the best interest of Californians.”

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