The 9.5% Solution

As everybody must know by now, California is in a world of budgetary pain, hemorrhaging to the tune of $42 billion in deficit.   And, as those of us who live in California know, the majority of us voted to allow a temporary increase in sales tax to help compensate.

I say the majority voted for this increase, but it's better to say the majority voted for it out of fear of NOT voting for it.  Dire calamities were predicted, alarms raised, the Governator's jaw clinched - muscles working in best movie angst mit determination mode.

So, on April 1, 2009 (so appropriate), the sales tax will increase by 1%.  Here in greater LA that means about 9.5% for the city and most surrounding communities. Ouch.

And it makes perfect nonsense, doesn't it?  Just when the economy needs more people to get out there and buy, buy, buy, we go and increase the cost of that activity.  Just when we need to stimulate jobs so that the state can collect increased business and income taxes, we dampen the business prospects.  In the movie biz, that would be called a plot hole, a failure of continuity, and possibly a flop akin to 'Heaven's Gate'.

I suppose only time will tell.  The tax increase is 'temporary', after all.  

Ya, rechts.