Mar 31, 2014
In March, two Los Angeles politicians proposed to raise sales taxes to 9.5% for the next 15 years to generate $4.5 billion. The current sales tax of 9.0% is already one of the highest sales taxes in the U.S. And in addition, authorities want another increase for the Metro and more construction projects.
These tax increases are regressive. Everybody, working poor and idle rich, pays the same sales taxes, but these taxes hit working people the hardest, taking a big chunk from their limited budget.
Meanwhile, the mayor wants more tax breaks for the corporations, including a proposal to completely eliminate the city’s business taxes that amount to $400 million per year, or 10% of the city’s budget. The Mayor’s plan predicts that this tax revenue loss will be offset by gains in sales tax and other revenue streams. Simply put, workers will foot the bill.
It’s past time to stop these gifts to the rich at the expense of workers. If they want more money, let them take it from the wealthy by stopping the handouts.