Business: California's Golden Touch

The world's ninth largest economy has a few growing pains

Californians this week vote on Proposition 9, the proposal to halve the state's personal income tax. Its chief sponsor is Howard Jarvis, the pugnacious architect of the 1978 Proposition 13, which cut property taxes by an average of 56% and set off a series of tax reductions around the country. Though its passage is by no means assured, Proposition 9 is another bold thrust in California's tax revolution. Since 1978, the state has indexed personal tax rates to inflation, put a lid on budget increases and abolished the business inventory...

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