The tax increase that was agreed to in the state budget compromise goes into effect on Wednesday. That's a penny increase when you purchase taxable items. That increase will run through June 2011, unless voters on May 19 decide to extend it an additional year.
The penny will generate a big chunk of money for the state -- almost $6 billion by the end of the next year. It breaks down this way: The 1% sales tax rate increase is expected to generate almost $1.2 billion in extra money by the end of the current fiscal year on June 30, according to state officials, and more than $4.6 billion the next fiscal year.
And if you smoke, taxes increase on cigarettes on Wednesday. The per-pack tax increases from 39 cents to $1.01. Interestingly, according to news reports, tobacco companies raised cigarette prices recently to offset a potential drop in profits from the tax increase.
So smoke'em if you got'em.
If the increase helps get the state above water again then cool but they have to not spend what they don't have. Smokers will pay any amount for their drug of choice so I don't think the tobacco companies will lose much money.
Makes "going Galt" pretty attractive, doesn’t it?
Taxes up a penny? Here are my two cents... "it's not going to be the big answer to the budget woes they think it is."
Feel free to feel like a "Fool" on Wednesday April 1st.Paying more,getting less,solving nothing...California.
I have no sense of reality when it comes to $ 6 billion. But wouldn't we Californians have to go on quite a shopping spree to reach that goal?
Another auto biographical story he can relate to his grandchildren.
How I tried to balance the budget by incrementally raising a tax while I called myself a Republican.
Ronald Reagan raised taxes. Pete Wilson raised taxes. Welcome to reality.