Our honorary Democratic party governor Arnold Schwarzenegger has decided to propose these tax increases: And the Democratic party in Sacramento will cheer him on. Some tax fighter Arnold was.
(h/t) Flash Report
- The Governor is proposing $ 4.7billion in new revenues for the current budget year in the form of:
- A Temporary Sales Tax Increase: A temporary increase in the state sales tax (from 5 percent to 6.5 percent) will generate additional sales tax revenues of $ 3.5 billion in 2008-09 for the General Fund. It will also effectively protect significant education funding. At the end of three years, the state sales tax would revert to 5 percent.
- Broadening the Sales and Use Tax to Include Certain Services: Effective February 1, 2009, the sales and use tax rate will be applied to appliance and furniture repair, vehicle repair, golf, and veterinarian services. Effective March 1, 2009, the sales and use tax rate will be applied to amusement parks and sporting events. This is expected to generate additional General Fund sales tax revenue of $357 million in 2008-09.
- Oil Severance Tax: Effective January 1, 2009, impose an oil severance tax upon any oil producer for the right to extract oil from the earth or water in this state. This brings California in line with other states. The tax shall be applied to the gross value of each barrel of oil at a rate of 9.9 percent and will generate additional tax revenues of $528 million in 2008-09.
- Increase Alcohol and Excise Taxes: Alcohol excise taxes are proposed to be raised by five cents a drink beginning on January 1, 2009. This increase is estimated to raise $293 million in 2008-09. Revenues from this tax will be used to fund critical drug and alcohol treatment and prevention services. Alcohol taxes were last raised in 1991.
I can not wait in the glee in the faces of voters of Norma Torres where they voted for an empty suit that is going to take the happy out of the happiest place on earth, Disneyland where tickets will be $74 after taxes now with a sales tax added to the service.
People are not dumb when they are taxed to death, they will spend less.