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All over America taxpayers are talking 'Tea Party'
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The internet has provided a new means for publishing and discussing topics not suitably covered by the network and syndicated news media. Many now consider our national news anchors and editors so biased as to be virtually ineffective as objective reporters of American politics and the concerns of average citizens.
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The burgeoning “Tea Party” that proclaims “no more taxes” crosses party and social lines. It started as a grass roots internet gathering of citizens with a common cause, to wit, saving some money from federal and state lawmakers that have run amok with the taxpayer checkbook.
The American taxpayer is starting to speak with one voice, and it is saying “enough.”
Americans are learning that personal financial planning is getting to be much more of an art than science. Guessing what will be left from the family paycheck is getting harder by the day. The phony “tax cut” proclamations of both major parties are finally starting to sink in with Jim and Joan America. "We are all learning that taxes can take many forms, and mortgaging tomorrow is not a wise way to pay for today."
I wrote the following article just prior to the increase in the California sales tax. Now the sentiment is resonating with citizens in other states.
Tea, anyone?
The one percent California sales tax increase will take effect on April 1, 2009. The California State Board of Equalization indicates that depending on where you live, your “new” sales tax rate will be between 8.25% and 10.25%
Now is a good time to prepare the family budget for the hit. We must all find and put aside the additional money to pay for the increased tax. We have no choice unless we reduce our purchases, which will further exacerbate the California recession.
If you have a family of three, and two of you are working in jobs that pay around $75,000 per year, you will need to put aside another $500 or so to pay for the additional sales tax. You can get a more accurate number by simply looking at your sales receipts for recurring taxable purchases in 2008, and add 1% to the figure.
Don’t forget to plan for and add in non-recurring expenses like the purchase of a car. If you need a $30,000 van for the family – the additional tax will be $300.
The unemployment rate in California has now moved over the 10% mark. The new sales tax will fall hardest on our unemployed neighbors. However, they know how much money they will get from unemployment insurance, and the government expects them to find and put aside the additional money to pay the increased sales tax.
The California legislature has enacted the sales tax increase, along with other new taxes ostensibly because they have “cut expenses to the bone,” and there is nothing more they can do. Their logic seems to be, "The California economy is getting worse, people are losing their jobs and can no longer afford to buy things, fifty percent of their retirement investments have vanished, and they have lost thirty percent of the equity in their homes, so we need to increase their taxes until the situation improves."
I have a suggestion for our legislators. Hire a dozen hard working middle class California homemakers who are able to maintain a family and a mortgage without incurring credit card debt –and let them loose on the state budget. I bet they could find more things to cut.
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