Archived: Editorial: State’s Fiscal Problems Hurts People and Businesses


According to credible sources, a state budget bill may include steeper taxes for most Californians, at the same time legislators in Washington D.C. are trying to lower the tax burden on individuals and businesses in a desperate attempt to get the economy back on track.

Among the proposed state tax increases rumored to be part of the budget proposal with still no date in sight for passage, is a .12¢ per gallon increase on gasoline.  Not only will the proposed tax put a huge dent in taxpayers’ wallets, it will most likely also add another brick into the tombs of our auto business and small businesses with delivery services.

Legislators also want a one-cent increase in the sales tax, which would raise Los Angeles County’s sales tax rate to 9.75 percent, or nearly 10 cents on every dollar spent. Vehicle license fee increases of .65 percent bringing the fees to 1.14 percent of the value of a vehicle are among taxes also under consideration, and which some pundits say have a high probability of being passed.

We don’t believe these tax increases will mean a greater number of Californians will leave the state, but we believe that the burden of these tax increases will have a devastating impact on the quality of life of Californians, especially the working poor.

Unfortunately, one of the measures supposedly being considered is a personal income tax surcharge of a quarter-percent of the taxes owed. This is one proposal that could push those who can afford to leave to quit the Golden State.

Whether the legislature cuts services, jobs or mainly leans on tax increases to solve the budget shortfall, we fear Californians facing the loss of their homes, jobs and ability to survive, may be so outraged that they will undertake a new round of ballot propositions to mandate budget priorities and allocations, further tying legislator’s hands in the budget process.

We hope that Sacramento finds a way to lighten the load on those who provide employment or we will be saddled with a lot of desperate and angry unemployed.

As of press time, members of the legislature claim there is still no deal on the budget, but deal or no deal, the state’s taxpayers are sure to be getting a raw deal.

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