Molly Mongers tax is horrible if people in Calif vote yes for it they will be sorry and it will hit them harder than Jerry Brown sales tax proposal I assure you. Her tax hits people making around 40K and it is a change to the tax code and I don’t think it ever goes away. I just figured out that my family will be paying an additional $1,110.00 a year tax on top of the 9.3% State tax and we make around $125,000.00 per year which is not a lot as this state is very expensive. At least with a sales tax increase you have the option to buy things or not in most cases. I am against both Browns proposal and Mungers. Here is the link to Mingers tax scheme and you can see how much you would pay. Look under “The Numbers” if you read the “Initiative” under section 8 it also shows how much you would pay. If you make between 48K to 100K you pay an additional $400.00 per year. Once you get to 101K and over you pay over 1,000.00 additional or more. It is abusrd
The problem with the Sales Tax is that it doesn’t apply to services, rents, groceries, etc. Services account for 70% of the economy. Subtract all the stuff that is not subject to Sales Tax and probably only 20% of spending gets taxed. Apply an 8% tax rate to 20% of spending and you are only going to collect 1.6% of all spending in Sales Tax revenue.
All this means that if the Sales Tax applied to all spending, it could be reduced from 8% to 5% and collect three times the revenue, while encouraging residents to buy local rather than online to avoid the higher sales tax. That higher sales tax revenue could be used to reduce income taxes on corporations and individuals.
Instead, CA always takes the approach that hits those with disposable income hardest and coddles to subsistence residents the most. It makes no sense at all.