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New Taxes for some of us today


Lex Talionis

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Californians - yep, thats me - will start feeling the pain of the recently negotiated state budget fix today, when a 1-cent increase in the state sales tax will force us to pay more for goods such as cars, furniture, laptops.... California's sales tax will rise to 6 percent, bringing the average local sales tax rate to almost 9 percent – one of the highest in the nation.

 

Oh yes, it gets even better as we also have or will see an increase in personal income taxes (0.25 percent increase in the personal income tax rate in the 2009 and 2010 tax years ) and higher fees to license our vehicles (0.5 percent increase in fees to license vehicles from this May to July 1, 2011)

 

What does this mean for Lex? further cut back in spending and when I need to spend, buy as much as possible off the net out of the state of CA.

 

 

NO on Proposition 1A - or all of these "temporary" taxes get a nice little extension after their supposed end date in 2011..

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Californians - yep, thats me - will start feeling the pain of the recently negotiated state budget fix today, when a 1-cent increase in the state sales tax will force us to pay more for goods such as cars, furniture, laptops.... California's sales tax will rise to 6 percent, bringing the average local sales tax rate to almost 9 percent – one of the highest in the nation.

 

Oh yes, it gets even better as we also have or will see an increase in personal income taxes (0.25 percent increase in the personal income tax rate in the 2009 and 2010 tax years ) and higher fees to license our vehicles (0.5 percent increase in fees to license vehicles from this May to July 1, 2011)

 

What does this mean for Lex? further cut back in spending and when I need to spend, buy as much as possible off the net out of the state of CA.

 

 

NO on Proposition 1A - or all of these "temporary" taxes get a nice little extension after their supposed end date in 2011..

 

 

Wait till 2012 when the CBO estimates the fed will return to trillion + dollar a year deficits under the current proposed budgets and spending plans. 2011 the deficit is projected to ONLY be 0.5 Trillion dollars then the next year it will drastically skyrocket as bills for the new initiatives that are in the budget and legislation are due.

 

The Directors Blog detailing this far more in depth, and with better expertise than I could do, at the CBO can be found here:

http://cboblog.cbo.gov/?p=216

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