Eventually, you'll run out of other people's money.....
$269 billion in new state taxes and fees proposed
By Dawn Hodson
More than $269 billion in new taxes and fees are being considered by the legislature according to the California Tax Foundation’s new report “Tax Watch.”
The proposed taxes and fees would more than double the current amount paid by California taxpayers.
This despite the state’s projected $13.5 billion reserve fund or the fact that Californians already pay some of the highest taxes in the nation.
“California’s high tax burden already takes a big bite out of the average family’s budget and these proposals would make it even more expensive to live and work here,” said California Taxpayers Association President and CEO Teresa Casazza. “Taxpayers should hold on to their wallets, because we expect even more tax hikes to be introduced in the next few months.”
The new report identifies more than 30 bills and constitutional amendments that come with higher taxes, fees, assessments and charges. If all of the proposals identified in the report were enacted, the amount of tax and fee revenue collected by state government would increase more than 140 percent, from $191.26 billion to $460.93 billion annually.
Those bills include a government-run healthcare tax. SB 562 (Lara) would establish a single-payer healthcare system where California would pay the healthcare costs of everyone living in the state. The program would cost $400 billion and require an estimated $200 billion in new taxes. (Some believe the cost would be even higher.) The bill remains on hold in the Assembly as lawmakers consider alternatives and options for funding this or a similar program.
A sales tax on business services would raise $49 billion. SB 993 (Hertzberg) would expand the sales-and-use tax to services used by businesses. The tax would be passed along to consumers in the form of higher retail prices.
A new tax on California businesses would raise $14.4 billion. ACA 22 (McCarty/Ting) would impose a new 10 percent tax rate on net business income of more than $1 million. The proposal would effectively bring California’s corporate income and franchise tax rate to 18.84 percent – the highest business income tax rate in the United States. The tax would make the 49 other states even more attractive to businesses seeking to open facilities and create jobs.
Californians Against Higher Taxes is a statewide taxpayer advocacy association that advocates against specific new, higher and targeted taxes that will negatively impact residents and businesses.