California Gov. Arnold Schwarzenegger's bipartisan tax commission has proposed an intriguing plan to take the state out of its financial difficulties, The Wall Street Journal's editorial board writes. California now has the largest budget deficit of all the 50 states. The plan is to slash tax rates on personal income, business and sales. The top personal tax rate would drop to 7.5% from 10.55%; business and sales taxes would be replaced by a Business Net Receipts Tax of no more than 4%.