The Commission on the 21st Century Economy, which is studying a potential restructuring of California’s tax system, is required to report its recommendations to the governor and legislature on April 15th. Beginning work in January, many observers questioned the ability of the committee to get anything done in such a short timeframe considering the complexity of the mandate  — studying the current tax system and a slew of possible changes— and making recommendations for change in less than four months time.

The commission intended to keep to its schedule but politics may intervene.

Since the commission began its work in January, the big story out of Sacramento has been the budget resolution. The voters in a May 19 special election must approve portions of the budget deal, more than a month after the tax commission report is due. Given that the major issue on the special election ballot has to do with continuing taxes for two more years if the spending limit measure is passed, the commission’s report would reverberate through the special election one month later.

The commission’s consideration of the tax system certainly would be colored by whatever the voters decide. Whether the voters establish a spending limit or reject it is something the commissioners would probably like to know before sending in a final report.

Continuing the new highest in the nation level of income and sales taxes for an extra two years is another important bit of information for the commission.

But, even more important is how the voters going to the polls May 19 might be affected by the commission’s report of April 15.

Voters considering whether to accept a spending limit and extend sales, income and vehicle license taxes for a couple of years could be influenced by recommendations from the commission to, for example, include new taxes on services, or lower the sales tax rate, or create a carbon tax … any number of recommendations which undoubtedly could and would influence the vote.

The commission report would become part of the campaign to pass or defeat Proposition 1A and perhaps some of the other measures on the ballot.

The governor and legislative leaders who put the commission together will not want that to happen. The way to prevent the commission report from being entangled in the ballot measure campaign, and at the same time give the commission more time to wade through the complex tax code, is to give the commission an extension to complete its work. Don’t be surprised if that happens.