The 3% Independent contractor withholding is back on the table, folks. Along with many, many, many more taxes. Glad we’ve got Kevin Jeffries on our team fighting this lunacy.
Are You Ready For The Big One?
I don’t mean for the big one (earthquake) on the San Andreas fault line (although you should be ready), I mean are you ready for the big California Budget fight? Ahhh, I bet your first thought was “I couldn’t care less“, or perhaps “It does not impact me – so why should I care?” What if I gave you 40 Billion reasons to care?
In this case, 40 Billion is the starting number that a group of California public employee unions have proposed in new tax increases. Yep – you read that correctly, $40 billion in proposed tax increases for all Californians.
So what are some of the proposed taxes increases from the public employee unions and/or pro-tax legislators?
- Increase the Vehicle License Fee back up to the Governor Davis level of 2% ($2 billion more).
- Increase the tax on oil to 9.9% (increasing fuel production costs by $1billion a year and passed on to you).
- Raise the top income tax bracket on all successful Californians.
- Expand sales tax to most services, such as haircuts, veterinarians, and auto repair (taking $18 billion out of the economy).
- Raise taxes on cigarettes by an additional $1.50 per pack.
- Raise property taxes on businesses in California.
- Raise taxes on each alcoholic drink.
- Withhold 3% of payments to all independent contractors (creating an administrative nightmare).
- Switch and raise gasoline taxes.
- Impose a Sugar Tax on soft drinks.
- Impose a Grocery Store Bag Tax (25 cents on each bag).
- Tax on employers for providing free or reduced employee Parking stalls at work.
- 4.8% Tax on your homeowners and/or business insurance policy.
Now as this is an election year, I don’t expect that my colleagues across the aisle will consider all $40 billion, but I would expect that somewhere around $15 billion to $20 billion of your hard earned income will be put on the table for serious discussions when budget talks begin. I anticipate the “real” budget battle will kick into overdrive the day the Governor issues the “May Revise” around mid May. That is when all of us will get a good look at the proposed budget (and the actual size of the deficit) for 2010-11.
Personally, I cannot imagine adding a single dollar of additional taxes on California’s families and employers in the midst of this “Great Recession”. Taking more money from those who are making less is just wrong.
On another matter, I want to personally thank all of you who have continued to support my efforts to improve the ability of the public and media to see and read proposed state legislation before it is voted on. Back in January – January of LAST YEAR I introduced legislation (ACA 8) to require that ALL legislation be in print for at least 24 hours before the legislature voted on the matter. As the State requires local government (cities, school boards, etc) to have their material in print for at least 72 hours before a meeting, you would think the State Legislature would be willing to live by similar rules. Well I’m sorry to say that just requiring a minimum 24 hours has proven to be so controversial that my colleagues across the aisle have not even allowed the bill to be heard in any committee. I guess I should just look forward to those exciting pre-dawn, last minute budget votes again! Or not…