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Latest Tentative State Budget Deal Gives Us a 9.75% Sales Tax

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Photo by Will Murray ("Willscrlt") LAist Featured Photos on Flickr
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"We threw Gray Davis out of office because of his tax increases," a Los Angeles resident told the Daily News about the new state proposed tax increases. "Now they're trying to do this, and it's three times worse."Yesterday, state politicians finally came to a tentative agreement about the budget. The latest calls for a 1 percent sales tax increase for 39 months, which would give LA County a 9.75% sales tax beginning July 1st because voters passed Measure R in November, effectively raising the sales tax to 8.75 percent. Additionally, there would be "a surcharge of 2.5 percent to 5 percent on the state personal income tax; a 12-cents-per-gallon increase in the gasoline tax; and a near-doubling of the vehicle license fee to 1.15 percent," finds the Daily News.

While the budget was critically needed months ago, to cautiously quote South Carolina Senator Lindsey Graham, this is " worse than nothing."

The tax increases could cost the average family of four an extra $1600 a year. The LA Unified School District could lose up to $555 million, forcing them to cancel programs and lay off up to 8,000 employee. Welfare payments could get severely cut forcing families onto the streets and stretching the needs of non profits. Another $100 could be cut from Metro, forcing them stop construction on the Expo Line between downtown and Culver City. And the list could go on and on.

"There is no joy in this resoluation beyond that this is a resolution," LA City Council President Eric Garcetti said about the situation on Wednesday night in a phone press conference. "We're going to see a lot more homeless, a lot more people in ERs."