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He proposes expanding the sales tax to services, prominently mentioning golf club memberships and landscaping.
Some of the reforms, such as extending the value-added tax to services, are already under way.
It would reduce personal and corporate tax rates, but expand the sales tax to services like those provided by lawyers and accountants.
To pay for the credits, he would extend the 7percentt sales tax to services provided by lawyers, accountants and architects, which he says are mainly used by upper-income earners.
A group of Republican and Democratic business leaders and former state officials calling itself the Think Long Committee for California is drafting an initiative to raise $10 billion by expanding the sales tax to services, while reducing personal and corporate taxes.
While Mr. McGreevey insists that he will resist broad-based tax increases, his administration is floating proposals to cut property tax rebates, to extend the sales tax to services and possibly to increase the tax rate for the very wealthiest residents.
Similar(49)
Even in states that have been able to navigate the legislative and political thicket to expand sales taxes to services, problems remain.
Ever wondered how much money you pay each year in taxes to service the national debt?
With borrowing, it will be us in the future, our kids, or our grand kids who'll pay the taxes to service the new debt.
The 29-year-old was asked if she would happily pay more tax to protect services.
A plan to raise council tax to protect services was blocked by Labour, meaning more cuts were needed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com