COMMUNITY COMMENTARY:
As lawmakers consider the tough but unavoidable choices that must be made this year to solve California’s budget problems, Democrats have just one target in sight — California taxpayers.
Rather than working with Republicans to cut wasteful spending, the liberal majority in Sacramento refuses to cut back on its unhealthy addiction to runaway spending, despite California’s $16 billion budget deficit.
Recently, Democrat leaders said that the their only solution for balancing the budget this year was raising taxes. They even threatened to hold up passage of the budget if it did not contain at least $5 billion in higher taxes.
If Democrats have their way, get ready to pay higher taxes on the car you drive, the gas you pump, the home you and your family live in, the health care you rely on, anything you purchase on the Internet, and even the plastic bags you use to carry groceries at the store.
Here are the “Top 10†tax increases proposed by Democrats so far this year:
?
10. The iTunes tax
Assembly Bill 1956 would require state tax officials to begin imposing sales taxes on music, movies and software purchases made online, such as on iTunes. Democrats have also talked about taxing all items purchased on the Internet ($500 million tax increase).
?
9. The plastic bag tax
Assembly Bill 2829 would impose a new plastic bag tax, at a still-unspecified level, on the plastic bags used by grocery stores and other retailers to package purchases.
?
8. Making it easier for politicians to raise taxes
Senate Constitutional Amendment 18 would make it easier for local politicians to raise taxes, by allowing educational finance districts to impose special taxes by a majority vote.
?
7. Increasing the car tax
Assembly Bill 2388 would raise the car tax based on the weight of the vehicle and the amount of carbon-dioxide emissions it emits, to a still-unspecified level.
Assembly Bill 2522 would authorize San Joaquin Valley air quality officials to impose a new $30 car tax on local drivers, without a vote of the people.
Assembly Bill 2638 would impose a new sales tax on car sales in California that get less than 15 miles per gallon.
Senate Bill 1731 would authorize San Francisco Bay Area transportation officials to impose a higher car tax on local drivers, without a vote of the people.
Democrats have also proposed restoring the higher car tax imposed by former Gov. Davis and repealed by Gov. Schwarzenegger, a $6 billion tax increase.
?
6. Increasing the gas tax
Assembly Bill 9xxx would impose a costly new “oil severance†tax on the cost of oil production in California. This will cause gas prices to soar to new heights in California as this new tax will be passed along to consumers in the form of higher prices at the pump.
Assembly Bill 2744 would authorize San Francisco Bay Area transportation officials to impose a new gas tax, of as much as 10 cents per gallon, to pay for new government spending.
Assembly Bill 2558 would authorize Los Angeles transportation officials to impose one of two different taxes, subject to a majority vote, to address climate change — an increased gas tax as high as 3%, or an increased car tax as high as $80.
?
5. Raising income taxes
Assembly Bill 2372 would impose a new 1% tax on Californians earning more than $1 million per year, raising the state’s highest income tax rate to 11.3%.
Assembly Bill 2897 would impose a new 10% tax rate for individuals earning more than $136,115 every year ($272,230 for joint filers) and a new 11% tax rate for individuals earning more than $272,230 per year ($544,460 for joint filers).
?
4. Closing so-called “tax loopholesâ€
Democrats and others have pushed closing “tax loopholes,†which is an effort to raise taxes on working Californians. These so-called loopholes include taking away the senior citizen tax credit (a $255 million tax increase) and reducing the child dependent tax credit ($2.4 billion) — which will hurt middle-class families.
?
3. New health taxes
Democrats have proposed the largest tax increase on businesses in state history, an $8 billion jobs tax, to pay for government-run health care. In addition, Assembly Bill 2967 would impose a new .06% tax on the gross operating costs of every California hospital, to pay for new government health care programs.
?
2. Creating a new tax on California businesses
All the latest on Orange County from Orange County.
Get our free TimesOC newsletter.
You may occasionally receive promotional content from the Daily Pilot.