Your fate has been sealed as has the fate of anyone who purchases goods or services from California business. That would include my favorite consumer good, red wine.
It isn't a secret that state spending has increased by 40% since Schwarzzengroper took office. Apparently the governor's economic illiteracy knows no bounds as he refers to the tax increase as the responsible thing to do.
It doesn't occur to him or the legislature to simply cut spending to the level it was the day the governor took office. The state functioned fine on that amount of revenue, just four short years ago.
What this tax increase means to the taxpayers is simple:
- A 14% increase in the state sales tax (one percentage point rise to 8.25% plus local levies which translate into as much as 10% in some jurisdictions)
- A 100% increase in the car license tax (TWC's politically incorrect truck license will rise from $265.00 to about $570.00--Per Year)
- A one quarter of a percentage point surcharge on all tax brackets (if you are in the 6% tax bracket, you are now in the 6.25% tax bracket).
Just for a frame of reference, so you can know how high taxes are in this state, a married couple with $56,000.00 in salaries, using the standard deduction, is in the 6% tax bracket.
Bloomberg story here.