Thursday, February 19, 2009

Living in California will get expensive

The State of California is having financial trouble, big time. This week a bill passed to fight the budget deficit. How will the new bill affect those of us who live in California?

Personal income tax rates will rise by one-quarter of a percent, and the state sales tax will climb by 1 percentage point, to 6 percent, though each county will have different rates and the average will be 8.9 percent. The state’s vehicle license fee — which Mr. Schwarzenegger abolished with great theatrics when he took office in 2003 — will nearly double, to 1.15 percent of the value of the vehicle.

I really hate paying more taxes. But, I guess we really have no way out of the budget deficit if we don't raise taxes. I hope the government will consider cutting taxes when the budget runs positive again.

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