"Throw out the tax code," Article I found in news media.

[babydoll]

I found this news media article in the LA times and thought this part was interesting discusion. What does these Paragraphs mean? I believe there's some false analogy here in comparison with merchandise vs services etc.etc.

The author starts of with title of this article with "Throw out the tax code."

The author title confuses his readers with Is this California state code that is thrown out or is taxes going to be nonexistant? Yeh if it's done with! this will be music to my ears.

Then he states in the beginning "There's plenty of revenue to be had if California fixes its outdated, unfair system."

The industries that drive today's state economy - software, information services such as Google, high tech-, diversified manufacturing, movies, video games, professional and business services --run on entrepreneurship, knowledge, creativty and technology. They produce more services and intangibles than hard goods. Operating in a global market, they face new competition fromanywhere. And they can locate whereverthere are fast broadband communications, good transportation, skilled workers and ahigh qualityoflifeto attract and hold employees.

The state's tax system simply hasn't kept up with this transformation of its economy.

Although the overall state and local tax burden on California businesses is almost the national average --and lower than in Florida and Texas, according to the Council on State Taxation, a nonprofit trade association - the system, in general, treates new investment and new firms unfavorably. That doesn't promote economic growth.