California Lawmakers’ Tax Voucher Stimulus Plan Poses Risks

An untried idea to boost the pandemic-stricken economy by selling vouchers to people and businesses willing to pay their California incomes taxes years ahead of time would pose risks to the state and to buyers if Democratic lawmakers get it off the ground.

Lawmakers have until they adjourn for the year Aug. 31 pass a bill directing the Franchise Tax Board, Treasurer, and Department of Finance to hammer out the voucher plan. Those authorities would submit a proposal by March 1, 2021 that irons out the details—including the size of the discount for buyers, possible tax consequences, and whether the ...