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Raising the Sales Tax & Not for Transit

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Metro has their half-cent sales tax increase proposal working its way through the capitol, but Schwarzenegger has his own sales tax increase he officially announced yesterday within a large budget compromise. Here's one part of his plan to fix the $15 plus billion budget: "A temporary 1-cent sales tax increase for three years (excluding diesel, gasoline and jet fuel) followed by a permanent 1¼-cent reduction beginning in year 4. The additional ¼-cent reduction would be a permanent base sales tax reduction beginning when the 1-cent increase is no longer in effect." But come November, Schwarzenegger backed initiatives like Proposition 1 for the High Speed Rail train from LA to SF could easily put us back into deficit. And if both taxes are approved, Los Angeles County is looking at a 9.75% sales tax.