Foundation for Economic Education

“California has a reputation as a high-tax state. When it comes to sales taxes, at least, it’s well deserved. At 7.25%, the Golden State’s statewide sales tax rate is the highest in the nation, according to a 2007 ranking. If Gov. Arnold Schwarzenegger’s proposed three-year, 1.5-percentage-point increase goes into effect, it would solidify our lead over our closest competition — Mississippi, New Jersey, Rhode Island and Tennessee, which all had 7% statewide rates according to the most recent ranking by the Tax Foundation. And that could take sales away from retailers as consumers look to neighboring states and the Internet to avoid paying taxes.” (Los Angeles Times, Friday)

The Law of Unintended Consequences

FEE Timely Classic
“Incentives and Income Taxes” by Russell Shannon