California is trying a novel experiment to increase taxes where the most productive citizens will want to move out because there is no incentive to achieve success. We as Californians already have the highest taxes in the nation and to depress the consumer driven economy with more taxes our legislators will experience Groundhog Day all over again with more budget problems.
We need to promote a business climate that will create more jobs. If we make sales taxes too high people will buy stuff in different counties or even Nevada and Oregon to save money on big ticket items. We want Californians to buy goods in their localities and we need to provide the incentive for people to consume.
We want people to consume. We want people to help drive the state economy. We should provide a tax credit for people who spend money in their communities. If you spend 500.00 in sales tax in a calendar year in your county, you should be given back 10 percent.
California has a use tax issue where due to our taxes being so high people naturally do want to save money. However when we shop outside our communities, our cities and public agencies suffer due to the lack of funding. This is my solution to help promote more funding to our local governments and to support our local businesses.
I hope to continue more conversations on taxation and the California state budget in future postings.