California is back in news and this time for taxes, it is known for its exorbitant tax rates in any case. It might or might not deserve this status overall for when you see the total taxes paid the Californians do not pay as much as the other states. But when it comes to sales tax California takes the cake.
When a ranking was done in 2007 California came up on top with 7.2%. The governor Arnold Schwarzenegger proposes to hike it by 1.7 % in the next three years it would surely makes things tough. This could lead to losses to retailers who would lose their customers to neighboring states where taxes are lower or maybe to online shopping sites, which offer a better rate.
“The higher the sales tax is, the more likely people are to buy things out of state or online,” said Lynn Freer, president of Spidell Publishing in Anaheim.
Los Angeles would be most affected as it already has the measure R and many more levies. If this new law is enacted the sales tax would go up to 10.25%.This would surely be the highest in nay Us municipal corporation..
“There’s something about that that double-digit rate,” said Bill Ahern of the Tax Foundation, a nonpartisan research group in Washington. “People who never noticed the sales tax at 7.5% or 8% suddenly will notice it when it goes to 10%.”
However if one sees the total burden it is surprisingly less in California. The U.S. Census Bureau ranks California No. 10. The tax foundation rates it fifth. There is a possibility that the governor’s proposal to levy taxes on car repairs and vet care might not be very popular.
