George Rebane
State Senator Ted Gaines reports in the 9jun18 Union – ‘New bill slaps Californians with tax on services’ – of a piece of surreptitious legislation (SB993) quietly wending through Sacramento that will install yet one more layer of taxes that the people must add to the tribute that they already submit to succor the Sacramento Leviathan. This new 3% tax on services will affect people directly and indirectly in more ways than we can count.
“Next time you visit a dry cleaner, hair stylist, manicurist, mechanic or any of the other countless services that we use day after day, week after week, you'll pay a new and additional three-percent tax for the exact same service. That's the last thing financially-stretched Californians need in this already unaffordable state. And history is clear that the three-percent tax will only creep up over time. … The damage wouldn't stop there. Small businesses contract out myriad tasks so they can focus on their core money making activity. They pay for computer services, payroll, janitorial, bookkeeping, legal services and more. Under this bill, they will be paying a premium for those services.”
The tax will give rise to a whole new bureaucracy charged with its administration that itself will cost over $600M annually, and employ a whole new tranche of government workers (aka parasites) whose benefit and retirement packages will require more millions taken into perpetuity from the shrinking corps of the state’s taxpayers. In short, this will be another cancer upon the horde of cancers already afflicting the state’s fisc, and it will “further damage California’s faltering economic competitiveness and corrode our long-term financial health.”
We the people used to pay taxes for acknowledged needed services that were best provided by the collective, i.e. government. Today new taxes are constantly added and existing ones are redirected for the sole purpose of sustaining and growing government (the employer of last resort). When governments start exacting tribute from the people with impunity and for such clearly self-serving purposes, it has always signaled the onset of a rapidly evolving autocracy toward eventual tyranny.
Addendum: As we have reported, California’s loss of productive middle-class taxpayers continues apace. And the state is fast on the track to follow other high-tax socialist enclaves like Vermont (home of Bernie the communist) which has now initiated a $10K ‘Vermont relocation grant’ in its desperate attempt to replace its outflow of taxpayers by attracting new workers who can telecommute from the Green Mountain State (here). Upon a moment’s reflection, it is clear that the $10K reward for moving there will only be taken by the innumerates who cannot calculate the horribly negative internal rate of return that this investment will have on their financial health. Exit question – do companies really allow such double dummies to work from home?


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