Local Tax Revenues Drop Dramatically-And Man Bites Dog

The blog post title is the headline story in today's Pasadena Star-News and it is about the fact that sales tax revenues decreased as much as 30% in the last quarter of 2008.
Really?! I just can not believe that! Sales tax revenues dropping? Why, what should these cites, counties and the state of California to do about it? Why raise the sales tax, of course! Yes, that is the ticket!
It is amazing that this story came today as it is the first day of the one percent hike in the state sales tax in California.
For those outside of the one-time Golden State, the sales tax went from 7.25% to 8.25%. And, if you are as lucky as your humble blogger to live in Los Angeles county, it went from 8.25% to 9.25%.
Beautiful!
A few of the cities actually saw increases in sales tax revenues. But in Los Angeles county, 78 out of 88 cites saw decreases in sales tax revenues. And worse are cities that have multiple car dealerships. Even in cities that have more balanced businesses, the drop was dramatic.
So, in the wisdom of our elected mob in Sacramento, the geniuses figured hey, people are not making big purchases so let us make it harder on them by raising the sales tax.
Do not be fooled. It is a serious and very regressive tax hike. And it is the kind of tax hike that will make people think twice about making a big purchase such as a car. Because in another act of wisdom from the geniuses, a hike in the vehicle registration fee also goes into effect today. So, a person thinking about buying a new car will possibly not buy a new one but a decent used one. If they will even be able to afford that.
In a time in which people need to be encouraged to buy products to increase tax revenue, the last thing that anyone should do is raise taxes. All that it does is perpetuate the lack of money and force the crack hos that masquerade as legislators to go for the crack pipe of raising more taxes and fees in other areas.
A case in point.
When the so-called economic "stimulus" bill was passed earlier this year, some governors were saying that they would not take some or any of the money. One such governor is Mark Sanford of South Carolina. He said that he did not want some of the money especially because it would mandate extending unemployment benefits. And, not just this year but for the foreseeable future. Gov. Sanford took a principled stand. But not our governor, Benedict Arnold Schwarzenegger. No, like a crack ho, he went on television and said that if Gov. Sanford did not want his share of the "stimulus" money, he would take it and gladly.
What a disgrace Gov. Benedict Arnold is.
And it is because of that stellar leadership not only is California in a bad way fiscally but most cities in the state. If Los Angeles county is any indication. Remember, 78 of 88 cities in Los Angeles county saw decreases in sales tax revenues in the fourth quarter of 2008.
Now with the first quarter of 2009 gone, one wonders what that statistic will be? And lets not forget this quarter we are in now. It is the first under the new sales tax of 8.25% at least statewide.
The moral of the story is that raising taxes, especially sales taxes, in the middle of a recession are the worst thing to be done. They cut revenue that the state, counties and cities need desperately. And, where it may be the difference between a family or anyone making a big ticket purchase and paying the bills and putting food on the table, think about what consumers are going to be doing more of.
If you are here in California, remember this when the genius, crack hos from Sacramento come and ask us, the voter, to drink the tax-laced Kool-Aid, and vote to perpetuate this garbage-vote NO! We have the chance on May 19. VOTE NO ON TAXES! VOTE NO ON ALL PROPOSITIONS, 1A TO 1F! It is time to take our state back. And the only way to do that is to vote against the special interests in Sacramento.