Thank You for your order! That’ll be $100 tax on your $1100 purchase. April Fools?!@?#! Nope. As of today, that’s how much some people will be paying when spending money in California, one of the states with the highest sales tax rates in the country.
April Fools!#@! Nope. 9% Sales Tax, Thank you.
State Gov’s Want Their Share
Less homes are being bought and sold, and people are losing their jobs. So less taxes are being paid on the property and income side. So what better way than to start taxing our spending to get their share of the revenue?
The recent economic turmoil has taken a toll on state government budgets. Ranging from California to New York, many states are losing a lot of tax revenue because of the real estate market fall out. So what’s their plan? Tax our spending.
Aren’t You Glad? We Don’t Charge Sales Tax
Well, Visiondecor is situated in southern California and the average local rate in the state is almost 9%. Wow! If you by an average car at $18,000, that’s $1620 in just sales tax. You can buy one of our leather sofas delivered with that kind of money.
And it’s also a sad thing that buying major pieces of furniture to make your home more comfortable will start costing an arm and a leg. Like a $500 dresser will cost you almost $50 in taxes. So a little self-promotion here. Visiondecor doesn’t charge sales tax to our customers in CA and we just pay it for our customers. It’s the least we can do to help out our customers and pay our share to help the government.
Taxes Will Mostly be On Your Shoulders
But anyways, this sales tax thing sounds nice but it doesn’t make too much sense. If people are spending less because they have less income, then that means they will be spending more on purchases that are needed. And if you remember from intro to econ, when items have an inelastic demand (like gas where you need it regardless of the cost) then any taxes added on top of the purchase is pretty much all paid for by the consumer. So that means the money going to the increase in taxes will be coming out of the consumer’s discretionary spending.
How sad. The government is literally stealing from the poor to give to the poor? What are your thoughts on the states’ government plans to fix their budgets through taxing spending?
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