California lawmakers keep trying to squeeze more money out of our overtaxed, overregulated economy. Instead of helping private sector jobs survive they are chasing them out of the state.
Take for instance Assemblywoman Nancy Skinner’s proposed legislation to force out-of-state online retailers to collect sales tax on purchases made by Californians. This ill-conceived measure would backfire by killing jobs and making our state’s budget problem worse.
If this law passes, 25,000 California small businesses called "affiliates" could lose their business relationships with out-of-state online retailers as has already happened in other states. Many California affiliates would simply have to move their businesses to another state.
As Forrest Gump’s mama said, "Stupid is as stupid does." It would be just plain stupid to pass a law aimed at increasing state revenues that does the exact opposite, especially when this same law is currently tied up in federal court and is likely unconstitutional.
It’s time to stop treating symptoms and start treating the disease. California’s core problem is that people aren’t working. They need jobs, not more laws and taxes.
We already have a law. People who buy things from out-of-state retailers should pay their use tax. As a member of the Board of Equalization, I want to make it as easy as possible for people to do that.
January 19th, 2011 at 12:00 am
We should lower the sales tax so people do not have to be evasive. Cities are nickle and dimeing their residents and shoppers with high rates such as Pico Rivera with ungodly 10% sales tax rates.
Maybe a 5% sales tax rate with a restriction that cities and counties cant have it more than 7.5% overall would help boost spending.