Senator George Runner, one of the Republicans actually standing up on our behalf in Sacramento with Senator Hollingsworth, published this message from the Howard Jarvis Taxpayer Association. If you do the math, you’ll find that while you may or may not qualify for the recently enacted federal tax reduction scam ($80k single, $150k family), you will get to cough up more than your rebate amount in new California taxes. Best case – if you qualify for the full $800 tax break from Obama you’d better save that extra $13/week that’s supposed to show up in your paycheck because you’ll need every penny plus another $300 AT LEAST to cover your increased California taxes.
Here’s the breakdown:
* Gas Tax: Proposed 12 cent/gallon increase: According to the Board of Equalization Californians consumed 15,461,861,205 gallons of gasoline in 2008. California has over 38 million people. Therefore, Californians consume on average 407 gallons per person or 1628 gallons per family of four. Based on these calculations, a 12 cent increase in the gas tax would cost the average family of four $195.36.
The same conclusion can be reached if one assumes families of four with two cars each driven 16,280 miles per year at 20 miles per gallon.
* Reduce Dependent Child Tax Credit from $300 to $100: A tax increase of $200 per child. 11.1 million taxpayers filed for this exemption in 2006. Cost to an average family of four (two dependents): $400
* Increase Sales Tax by a proposed one percent: According to the Board of Equalization, a one percent increase would result in an annual tax increase of $266 for an average family. HJTA, using Federal labor statistics, has also drawn similar conclusions.
* Proposed .5 percent increase in the Vehicle License Fee (from .65% to 1.15%) As a general rule of thumb, for every $10,000 of car value (a rough determination of your car’s value can be determined by a Kelly Blue book) would result in an additional $50 of new taxes per car. Assuming a two-car family, at minimum this would be a tax increase of $100. However, staff in the Appropriations office estimates that the average increase will likely be between $130-140.
* Proposed 2.5 percent income tax surcharge on all income tax liability: In the last (2007-2008) fiscal year California received $54.8 billion in income tax revenues. Multiplying this number by 2.5 equals added income tax revenues of $1.37 billion. In 2007, there were 15 million income tax returns. So roughly, every tax return will pay an additional $91 dollars in income taxes. This tax would apply beginning with the 2009 tax year and is not retroactive.
Based upon these numbers, we believe the impact on the average family of four would be at minimum $1100 annually. Further, the numbers for sales and VLF tax increases are difficult to compute accurately, potentially making this burden higher.
AND be sure to contact the architects of this massive tax increase:
Assembly Speaker Karen Bass at [email protected], 916-319-2047; and
Senate President Darrell Steinberg at [email protected], 916-651-4006.