Governor Arnold Schwarzenegger announced the formation yesterday of a state blue ribbon commission to look at overhauling the state's tax code. The commission appointments were divided among the Governor and Democratic legislative bosses.

Among the Governor's appointees was Anaheim Mayor Curt Pringle. Congratulations to Curt: I'm glad there is at least a few conservatives on the commission -- it's Russian roulette when it comes to the Governator appointing conservatives to anything.

I have two words for the commission: flat tax. Toss the pernicious progressive tax system out in favor of a single tax rate on incomes. The current system makes state revenues dependent on the fortunes and decisions of a tiny fraction of the state population. When one of those individuals suffers economic reversal or moves out of state, the state budget takes a hit.

A broad-based, low flat tax will serve as both a stable, predictable revenue source and an incentive for economic growth that can restore our competitiveness with other states.

And none of this "revenue neutral" nonsense. This state's tax and and regulatory policies -- such as these silly, destructive anti-global warming laws -- are driving California's economy into the ground, which only exacerbates the budget situation.

The surest way out of the state's budget deficit death spiral is structural reform combined with a tax-and-regulatory regime that rewards risk, investment and job creation. Specifically, constitutionally restricting the annual growht of state spending to population growth plus the inflation rate, and a single, low income tax rate that rewards work and success.

Godspeed, Curt Pringle!

POSTSCRIPT: I'm both anxious and encouraged by the appointment of Michael Boskin.

Boskin was chairman of the Council of Economic Advisors to Pres. George H.W. Bush's man and presumably supported Bush's assent to the 1990 tax increase -- at the time, the largest in American history -- as a deficit-reduction measure.

Later, however, he testified before Congress that a flat tax would boost growth by 10 percent within ten years.