California Tax Cuts of 1% Have Residents Cheering
Sales tax cuts of 1% will literally have you saving a penny for every dollar you spend, resulting in much elation for California residents. Additionally, annual vehicle license costs will also drop 43%. Taxes were part of an emergency increase passed by Sacramento in 2009 in response to a large budget deficit. It has since been allowed to expire.
Republican lawmakers in favor of the cut estimate a family of 4 will save about $1,000 on average, a much needed padding for savings accounts at a time when the economy is still gripping with deflated home values, high unemployment and a U.S. debt deal that may or may not happen.
The state sales tax will now be 7.25%, meaning someone who takes on a new auto loan and purchases a $20,000 car will save $200 in taxes. While paying lower taxes is good news for all, some still question whether or not it will provide the right impact.
Sacramento will most likely have to cut many government programs that will affect lower income families. The result could further erode the quality of life for many residents in California, including . Is that 1% in savings truly worth it? For buyers of big ticket items, the answer will be a resounding yes.