Wednesday, March 25, 2009

Sales tax hike statewide in two weeks

There’s more tax coming to a store or business near you. That is the message to be clear on that’s discussed in the article, “No April Fool, Sales Tax Will Increase,” a story in the L.A. Valley College student newspaper, the "Valley Star," by Astrid Seipelt , Issue date: 3/25/09.

This was the result of the State legislature’s February 19th approval of the budget terms. The budget deficit is announced as $42 Billion. The tax is “temporary” and the duration will depend on the May 19 vote on Proposition 1a that will extend the tax if approved.

The story comments on the Governor’s involvement on this situation, a big involvement:

“Governor Arnold Schwarzenegger is a proponent of the passage of Prop. 1A,
stating that he was doing the best for the state, despite reneging on his promise to oppose new taxes when he was reelected in 2006

"Back when I was running, I wouldn't sign a pledge against taxes because I didn't want to be constrained if there were a disaster, like an earthquake," said Schwarzenegger to the Sacramento Bee. "In a way, the disaster happened. The
state of California faced insolvency."

If you will remember, Gov. Swarzenneger was elected in a recall election based on Gov. Gray Davis' spending the state into a huge deficit. Since that election, the Gov. has done a complete reversal of postion, alienating people who put him into office as he has currently has allowed the State spending to far surpass those levels that Gov. Davis approved. The Governor, since being shut down with some tough measures he supported a few elections back, has really been responsible for a lot of what we have now, and then chastises those who seek to put the brakes on things.

The Valley Star story states the additional feature of taxing impact locally as,

Angelinos will also be dealt with another tax hike on July 1, when the county
tax rate increases to 9.75 percent July 1. This increase can be attributed
to the passing of Measure R by voters last November. According to
Metropolitan Transportation Authority, the measure will assist in funding
the improvement of transportation in the county, and will be imposed for the
next 30 years.

The "improved transportation in the county" is just a goal that may accomplished in some places, and at some time in the uncertain future, but the imposition of the taxing burden is here to stay, thanks to campaigning for passage of what in my view is highly speculative in terms of results and limited in terms of benefits in a geographic settings. I don't think the consequences were worth the actual effects. This might be one of the situations fitting the saying, "Be careful of what you wish for."