The inefficiencies of the national sales tax policy are in placing the primary responsibility under the auspices of the federal
government. There is bound to be considerable administrative drain on revenues as they are collected at the federal level and make their way to the lower levels of government. Ultimately, this fact, combined with the lost revenues that California faces by the enactment of a tax rate that is lower than its own (see Chart 3), prevent this proposal from being in the
best interest of the state of California.