LA voters regret getting hoodwinked by "homelessness" sales tax
Rebellion, Rascals, and Revenue: Tax Follies and Wisdom through the Ages, by Michael Keen and Joel Slemrod
SJ's tax-happy business bloc (Mahan, Mulcahy, Casey) might want to pay attention to a growing tax revolt in LA County, as citizens push back on a homelessness levy that's making life less affordable and not delivering on its promises. U.S. Sun reports.
Shoppers will notice a higher sales tax in Los Angeles County starting on Tuesday. Goods will cost a quarter-cent more in a new measure to combat homelessness. A county-wide tax hike, approved in November, raises prices on goods from gas to grocery bills by a quarter-cent.
The sales tax went up from 9.5% to 9.75% to increase funding to prevent homelessness.
The increase was approved by voters, but shoppers still aren't happy with the raised prices.
"I didn’t vote for this!" one disgruntled resident wrote on Facebook.
"There's no way people voted for this," another shared.
A third added, "This is ridiculous. It’s so expensive already this is insane."
"How are people still voting for tax hikes when there is plenty of money already?" another slammed.
"These officials are spending tax payer money on wasteful items. The more you give the more they want."
The increase also means that two cities in northern Los Angeles County, Palmdale and Lancaster, have a staggering 11.25% sales after residents approved additional tax increases, KNBC reported.
That makes it the highest tax rate of any large city in the country, surpassing Seattle, which previously held the title with a 10.35% sales tax.
The Los Angeles County tax increase was passed with Measure A, also known as the Affordable Housing, Homelessness Solutions and Prevention Now measure.
The measure's legislation said that about 60% of the money from the sales tax will cover costs for homelessness services.
Of that 60%, 15% of it will be distributed to cities based on an annual count of people who are homeless in the area.
Another 35.75% of that money will support the Los Angeles County Affordable Housing Solutions Agency.
The agency is a program created in 2023 to oversee solutions to the homelessness crisis in the state.
Palmdale City Councilmember Andrea Alarcón told KNBC she was the only elected official in her region who was against the tax hike.
"This will disincentivize local buying, hurt local and small businesses, and deter tourism," she wrote in an opinion piece about her decision to oppose the measure.
"The people of Palmdale cannot afford an additional tax on day-to-day expenses.
The sales tax will remain in effect unless it is repealed by voters.
Read the whole thing here.
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