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California’s Budget Crises, Tax Reform, and Domestic and International Tax Competition Case Solution & Answer

This Case is about COMPETITION, ECONOMY, GLOBAL STRATEGY, GLOBALIZATION, POLICY REGULATION

PUBLICATION DATE: April 27, 2010 PRODUCT #: 710038-HCB-ENG

In the year 2009, Governor Arnold Schwarzenegger consistently proclaimed financial emergency situations as California’s state budget deficit reached all-time highs. The Governor and legal leaders developed the Commission on the Twenty-first Century Economy to suggest tax reforms that would enhance the state’s financial health and competitiveness. The case explains the financial and political factors to California’s relentless financial deficits and the reforms suggested by the Commission. It sums up current patterns in tax by U.S. states and OECD countries, relating the empirical patterns to tax theory.

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