From: mike@gordian.com (Michael A. Thomas)
Subject: Prop 167, table 1 from voters pamphlet
Organization: Gordian; Costa Mesa, CA
Date: Fri, 16 Oct 1992 18:58:28 GMT

In breaking with the tradition of ca.politics eternal flamewar
on child abuse vs. nambla, I have typed in table 1 of the Legislative
Analyst's appraisal of Prop 167. Typos are, of course, mine.

Sales Tax Rate

Current: Current statewide rate is 6% until July 1993, then will drop 
by 1/2% to 5.5%

Proposed: Reduces statewide rate to 5.75% on January 1 1993 and to 5.25%
on July 1, 1993.

Sales Tax Exemptions

Current: Sales tax applies to sales of candy, snack food, bottled water,
newspapers, and periodicals.

Proposed: Exempts these items from sales tax.

Personal Income Tax Rates

Current: Temporary 10% and 11% income tax rates for upper-income
taxpayers (rates expire in 1996)

Proposed: 1. Lowers income level at which the 11% rate applies and makes
both the 10% and 11% rates permanent. 2. Creates new 12% rate.

Alternative Minimum Tax on Personal Income

Current: Taxpayers who claim many tax deductions and exemptions must
pay a minimum tax of 8.5% of specified income.

Proposed: Raises the minimum rate to 9.3% for high income taxpayers.

Renters Credit

Current: Income tax credit provided to low and moderate income renters.

Proposed: Extends this credit to all renters.

Corporate Franchise (income) Tax Rate

Current: Most corporations are subject to a tax on their net income
of 9.3%.

Proposed: Raises the tax rate to 10.3%

Alternative Minimum Tax on Business Income

Current: Corporations that claim many tax deductions and exemptions must
pay a minimum tax of 7% of specified income.

Proposed: Raises the minimum tax rate to 7.7%

"In lieu" Tax for Banks and Financial Corporations

Current: Banks and financial corporations are exempt from local business 
taxes and personal property taxes, and instead pay "in-lieu" income taxes
to the state.

Proposed: Makes banks and financial corporations subject to local business
and property taxes. Eliminates "in-lieu" income taxes.

Tax on Certain Small Corporations (Subchapter S Corporations)

Current: Certain, generally smaller, corporations have special
rules regarding the accounting of profits and losses for tax
purposes. These rules usually lower taxes owed to the state.

Proposed: Limits which corporations can take advantage of the these
special rules to those corporations with gross income of less than
$10 million per year.

Deductibility of Loan Loss Reserves for Banks

Current: Banks and other financial corporations can deduct from their
income any funds that they set aside as reserves to pay for losses 
from bad loans.

Proposed: Limits deductions to actual losses from bad loans.

Deductibility of Drilling Costs

Current: Companies can deduct from their income most expenses 
associated with exploration for oil and natural gas in the year 
the expenses occurred.

Proposed: Requires businesses to deduct these expenses over a
longer period of time.

Deductibility of Executive Salaries

Current: Corporations can deduct from their income the compensation
they pay to their employees.

Proposed: Limits the amount of compensation paid to executives
that businesses can deduct for tax purposes. Limits apply to 
businesses with more than 1000 employees.

Interstate and International Businesses

Current: To determine income taxes, companies doing business
in other states or countries must determine what portion of 
their income is due to business activity in California using
specific rules that considers how much property, payroll, and 
sales a company has inside and outside of the state.

Proposed: Changes the rules regarding this determination by
(1) requiring the consideration of income earned only in
the United States and (2) increasing the significance of a
company's California sales relative to the rest of the country.


Property Taxes (Change in Ownership)

Current: Real estate property owned by business is generally
reassessed when more than 50% of the interest in the business
is obtained by a single purchaser.

Proposed: Requires county tax assessors to reassess property
whenever 50% of the interest in a business is sold, and to
presume this occurs once in every three-year period, unless
it is proven not to have been sold.

Insurance Companies

Current: Most insurance companies pay tax at a rate of 2.35%
on the amount of premiums from insurance policies sold.

Proposed: Raises the tax rate to 2.46%.

Oil Severance Tax

Current: The state imposes a fee for the regulation of companies
extracting oil from California based on the amount of produced.
The rate of this tax varies from year to year and is currently set
at 2.5 cents per barrel (about 0.2% of the value of the oil)

Proposed: Establishes a tax on oil that is extracted in California.
Tax would be 3% of the value of oil extracted and would apply only
to companies extracting more than 1.2 million gallons a month.




-- 

		Michael Thomas	(mike@gordian.com)
	"I don't think Bambi Eyes will get you that flame thrower..."  
		-- Hobbes to Calvin
		USnail: 20361 Irvine Ave Santa Ana Heights, Ca,	92707-5637
		PaBell: (714) 850-0205 (714) 850-0533 (fax)