The 'Homeless Billionaire' Plans to Save California

Nicolas Berggruen is a German billionaire was nicknames nicknamed the “homeless billionaire” in 2011 because he lives in hotels and does not own a home.

He aims to make America’s “Golden State” sparkle again by cut income and sales taxes, but increasing the revenue base by taxing services at 5%.
He is now working on a plan to convince California's voters and political leaders.

Berggruen has formed a commitee 'Think Long Committee for California', which includes former U.S. Secretaries of State George Schultz and Condoleezza Rice among others. They have recently published their suggestion which focus primarily on reshaping California’s fiscal system.
The Committee recommends applying just two income tax rates:
2% for people with annual salaries of between $45,000 and $95,000; and 7.5% for anyone earning above $95,000 per year.

Other suggestions include:

People with annual incomes of less than $45,000 would face no state income tax under the group’s plan.
The tax rate for companies would be cut back to 7%.
The sales tax rate for goods would also be trimmed, from 5% to 4.5%.
In order to broaden the overall tax base and “make the state more competitive,” the Committee recommends taxing all services at 5%

“This combination of cutting the personal income tax and broadening the tax base will help stabilize the boom and bust cycle of the budget while generating $10 billion in new revenues annually to start paying down the state’s ‘wall of debt’,” the report reads. Berggruen and his associates also recommend creating a citizen council in charge of overseeing public accountability. With an eye on the November 2012 California elections, the group plans to launch a p.r. machine in favor of its “Blueprint to Renew California.”