California Sales Tax Could Increase 1.5% Soon…Thanks Arnold!
California Governor Arnold Schwarzenegger has called a special session of the State Legislature and indicated that he’s open to a California State sales tax increase of 1.5%. This increase would make the sales tax in some counties over 10%. I don’t know about you, but I for one am not ready to pay a dime more at this time. I don’t even have an extra dime to spend!
From the Associated Press:
Gov. Arnold Schwarzenegger has proposed $4.4 billion in tax increases and billions more in spending cuts to close California’s worsening budget deficit, declaring: “We must stop the bleeding.”
Schwarzenegger on Thursday called for a special session of the state Legislature to address a deficit that has grown to $11.2 billion just six weeks after he signed the budget for the current fiscal year.
He said the state’s economic condition has deteriorated significantly since then, with a cratering stock market and the continued decline of the housing industry.
From the Los Angeles Times:
Gov. Arnold Schwarzenegger is expected to unveil a plan today for a steep sales tax increase and deep cuts in services to wipe out a budget shortfall that is expected to swell to more than $24 billion by the middle of 2010, according to Capitol staffers with knowledge of the proposal.
The linchpin of the governor’s plan is the sales tax increase of 1 1/2 cents on the dollar, which could raise more than $10 billion through fiscal 2009-10. Such a tax is likely to face resistance from Republicans, who blocked a smaller increase proposed by the governor last summer and have vowed to continue to do so.
Sales tax in Los Angeles would shoot up to 10.25% if the governor’s newest plan were to be approved. That would include a half-cent sales tax hike that Los Angeles voters apparently passed on Tuesday to fund transit projects. The statewide sales tax rate is 7.25%.
Tags: $4.4 Billion, Arnold Schwarzenegger, Budget Deficit, California Sales Tax, Democrat, Economy, Governor Schwarzenegger, Housing Market, Legislature, Politics, Republican, Sales Tax, Stock Market, Tax Cut, Tax Increase, Taxes
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April 7, 2009 at 2:23 pm
Money doesn’t grow on trees. The increase in taxes will kill the economy even further. Property taxes increase every year. If the local and state governments are truly bankrupt where does all the money go? Probably lining their own pockets like giving themselves perpetual pay raises all the time. They, all the local and state politicians and public employees should be terminated, and the governments be dismantled.