San Jose Mercury News: Sales taxes hit 10 percent in Hayward, San Leandro, Union City, Albany and El Cerrito
media mention
When it comes to tax fairness, California gets high marks for its income tax, which targets the wealthy, but a demerit for its sales tax, which ranks among the highest in the nation, according to the Institute of Taxation and Economic Policy, based in Washington, D.C.
“Any tax that is based on what you consume is going to take a bigger chunk out of the pockets of low-income families,” said Matthew Gardner, the institute’s executive director.
Gardner attributes rising sales tax rates in California tax to Proposition 13.
Not ony did the 1978 voter-approved initiative limit property tax increases, forcing the state to seek alternative revenue, but it set a daunting two-thirds requirement for property tax hikes.
Since sales taxes can be approved with just a simple majority, Gardner said, local governments have an incentive to seek them, even though they disproportionately affect the poor.
“In California, policymakers can’t weigh these things equally,” he said. “There is an institutional bias leading them to seek sales tax increases.”