Questions, answers about California's budget

Mercury News ^ | 02/19/2009 | Edwin Garcia

[heleny]

... sales tax increase take effect...?

... [add +1%] ... April 1, .... If the spending cap fails, the tax hike ends June 30, 2011. If the cap passes, the tax ends June 30, 2012.

...

... special election May 19. ...
... spending cap;
... increase annual education funding by $9.3 billion in future years;
... Proposition 63 mental health ...;
... Proposition 10 cigarette tax ...;
... state lottery; and
deny pay increases to lawmakers during budget deficits.
....

...

... May 19, the vehicle license fee rises from ... 0.65 percent ... to 1.15 percent.... [expires] June 30, 2013.

... income tax...?

... 0.25 percent surcharge on personal income tax, ... [less] ... if the state receives more federal stimulus.... The surcharge, for the 2009 tax year, lasts through tax year 2012 ....

....

... state worker furloughs every two weeks?

... until labor unions ... trim $1.4 billion in payroll ....

[heleny]

If CA implements a spending cap, we should be spending less, not more. Given that CA is supposed to have a balanced budget each year (no deficit), I don't understand why the tax increases last longer with a cap than without a cap. Clearly the budget is not truly balanced.

• Sales tax = 8.25% plus local sales tax beginning 4/1/09. (e.g., = 9.75% in L.A. starting this summer)
  
• VLF property tax = 1.15% plus fees beginning 5/19/09
  
• Personal Income Tax = +0.25% (= 9.55% for >~$47k) beginning 1/1/09, or +0.125% if CA gets $10Billion stimulus (according to similar SF Gate article Q&A on California tax increases)
• plus your cost of living will increase, as every business passes its tax increases to the customers.
• plus more tax increases coming when the tax base shrinks if the local economy contracts more

[txnativegop]

Is the Head Dead Yet? Because the body soon will be, or is already.

[FastCoyote]

My my, a 9.75 % sales tax? at some point the whole system breaks.

[Oldpuppymax]

But The People’s Republic NEEDS a big budget. I mean, birthin’ and takin’ care of all those anchor babies...that ain’t cheap!

[Cindy]

http://www.freerepublic.com/focus/chat/2136635/posts
“Are you looking for a job?”

Note: This thread is updated on a regular basis.

[Liz]

"Ach der lieber....dat's dah Kaleefurrneeyah budghet?"

"Ai gotda go'n trow Maria off dah ski livt at Sun Valley. "
Ai gotda getda nashynal symputty when anudder Kebbeedey goes kaputz."

" Chonny and Wooty, you two RINOS bettah make udder plans.
Ai hear RINOS kin get jobs as Val-Mart greeters, Home Depot
paint mixers, McD's ketchop pumpers, unt vaiters at Ved Lopstah."

"Ai gotda vunny veeling dah Reepublucan Potty tinks RINOS are pure crapola."

[Wayne07]

I feel bad for some of the great internet retailers in california like newegg.com. Amazon.com with amazon prime becomes a killer option.

[Glenn]

Sales tax = 8.25% plus local sales tax beginning 4/1/09. (e.g., = 9.75% in L.A. starting this summer)

The FairTax Freepers should be rejoicing this judicious choice!

[Parley Baer]

The insanity continues in California. In the last election the choice was between Rhino Arnold and dimocRAT Bustamonte. Again the lesser of two evils.

[JustTheTruth]

Has anyone calculated red states’ vs. Blue states’ immigration/outmigration rates? Counting only U. S. Citizens? Who would want to move into those blue tax hell holes?

[heleny]

My my, a 9.75 % sales tax? at some point the whole system breaks.

Cities may have even higher sales tax rates. For example, South Gate is currently 9.25%, after adding 1% last fall; with the additional + 0.5% LA County Measure R + 1% CA statewide = 10.75% sales tax starting this summer.

(Last November, the LA County voters passed Measure R by slightly more than the 2/3 vote requirement. That 0.5% additional sales tax begins July 1, 2009, for the next 30 years -- likely to be extended forever.)

The statewide additional 1% is supposedly temporary, although CA state history demonstrates that all temporary excise tax increases were made permanent eventually.

LA consumers who live near the edge of the county may consider making large purchases in adjacent counties. After July 1, 2009, the sales tax rate difference will be

Los Angeles County     9.75%,
Orange County         -1%, 
San Bernardino County -1%, 
Ventura County        -1.5%, 
Kern County           -1.5%

[heleny]

The FairTax Freepers should be rejoicing this judicious choice!

Well, no, because the state income tax rates increased, too, and CA still collects property tax, business tax, and lots of other taxes that they call "fees."

[ColdWater]

I don't understand why the tax increases last longer with a cap than without a cap.

The republicans dealt with the democrats. The democratic majority did not have the spending cap in the bill. I was put in in exchange for extended tax increases.

[heleny]

Has anyone calculated red states’ vs. Blue states’ immigration/outmigration rates? Counting only U. S. Citizens? Who would want to move into those blue tax hell holes?

There were some threads a while ago about CA-born emigration from CA, but the population is still increasing due to immigration. Not all immigrants support liberal policies or higher taxes.

Many places in CA are very beautiful. Today I jogged in 70 F weather and saw both the ocean and snow-capped mountains. This large state is home to many people, including lots of conservatives holding the line against socialism.

[heleny]

The republicans dealt with the democrats. The democratic majority did not have the spending cap in the bill. I was put in in exchange for extended tax increases.

Thanks. Yes, I know it was due to compromising between the D and R sides. I just meant that it's illogical -- with a cap, CA should spend less and therefore need to collect less tax.

[ColdWater]

I just meant that it's illogical

You expect logic from California?

[CottonBall]

LA consumers who live near the edge of the county may consider making large purchases in adjacent counties.

I'm making purchases in other states. I don't care if it costs me more, I'm mail ordered almost everything from now on. It's a matter of principle. (And I love Amazon's great customer service, free shipping, and delivery to my door!)

[CottonBall]

I’d like to see those statistics. But I’d bet the MSM are covering those up, just as they cover up the stats on how our kids do on international tests or on how many graduate that go to school on grants.

[CottonBall]

Many places in CA are very beautiful. Today I jogged in 70 F weather and saw both the ocean and snow-capped mountains. This large state is home to many people, including lots of conservatives holding the line against socialism.

I don't seem to be holding the line very well. Nor anyone else...

[Freedom_Is_Not_Free]

No Prop 98 cuts? Education takes 50% of the budget. That would be a start.