California’s Cost of Living is Hurting the Middle Class

Middle classThose interests are financing a multi-million-dollar disinformation campaign claiming that the state’s roads and bridges are unsafe because Californians’ taxes were too low.

It would be funny if it wasn’t so expensive.

The reasons that Proposition 6 is so popular — despite the irresponsible and self-serving claims of its opponents – are legion. California already had the fifth-highest gas taxes in the nation, even before the tax hike. Our state income tax rates and state sales tax rate are the nation’s highest. Add to that crushing regulations and counterproductive progressive policies that result in outcomes opposite of that intended and it’s easy to understand why California is suffering from a massive outflow of citizens to other states.

That exodus to Texas, Arizona, Nevada and other states is being driven by a singular powerful force — cost of living. Few Californians are unaware of how expensive it is to live here relative to other states. Despite a rapidly growing national economy, many citizens here still feel left behind, and for good reason. California’s poverty rate is 20.6 percent, the highest in the nation, when the cost of living is taken into account. In a recent poll, 47 percent of Californians considered themselves “working poor.”

In the debate over Proposition 6, opponents understate the impact on the cost of living that results from these tax hikes. A recent study by the California Policy Center exposes just how punishing last year’s tax increases are for middle-class Californians and why they should be repealed.

According to the analysis, the gas tax and car tax hikes will impose on an average two-car family at least $1,500 in taxes a year. When adjusting for the “average” tax rate, a two-car “average” family must earn almost $2,000 in pre-tax earnings just to pay their California car and gas taxes. Obviously, this isn’t chump change.

The news for low-income families is even worse. A typical two-car low-income family may pay $1,800 in taxes a year. Because low-income families are in a lower tax bracket, that two-car low-income family still must earn almost $2,000 in pre-tax earnings just to pay their California car and gas taxes. …

Click here to read the full article from the San Bernardino Sun

Comments

  1. I’m retired, retired now seven plus years and my current income is less than when I initially retired and not because of anything other than medical insurance cost. So taxes take a big hit on my income but Gov Brown and his legion of Brown Shirts really don’t care. I can see the hit that the middle and lower income levels will be getting and again our government doesn’t care.
    And that is really the crux of our problem, a governor and legislature (full of Los Angeles illegal aliens!) really doesn’t care. Their selfish agenda is on legacy’s and being the “elitist” in a socialist state, the taxpaying Citizens be damned!
    I hope proposition 6 fails dramatically, then I’ll know that California has a chance. Otherwise, the wife and I need to get serious about moving out of state. It will be most definitely time to sell our home before people realize that they can’t afford it.

  2. The “No on Prop 6” people are making a mistake in not screaming to the rooftops the fact that BILLIONS are paid in gas taxes/registrations fees a year for the roads but the money is mostly sidetracked into the general fund for liberal programs. Cannot someone file a law suit against the legislators to reimburse those funds back to transportation? The money from Moonbeam’s choo-choo would be a big start!

  3. Gawd! The Official California Voter Guide describing Prop 6 looks like nobody supports it, while firefighters, cops, and other good guys want better roads. John and Ken on the radio are great to listen to because they keep bringing up the number of times the politicians have diverted funds away from road construction and repair. I don’t think enough people statewide will hear these two guys, but many will read the fake descriptions. And Becerra in his campaign statement says he’s an anti-NRA crimefighter who has “taken guns off of the streets…” Really? Whose guns? And Tony Thurmond, the guy who wants to run schools — you know, places where children are — broadcasts his Planned Parenthood Affiliates endorsement: Black and in charge of children, and taking money from the number two killer of black people, second only to Democrat mayoral cities like Chicago, Baltimore, Detroit, and Los Angeles.

  4. I’m not yet retired, but I’m playing the “back nine” of my career and already made the unpleasant choice to move out of state and cash out near the top of the market, before market or seismic forces cause a re-set in housing prices…
    Jim hit the nail on the head, that Brown has had an environmentalist agenda since his first term, and the legislature now has a “Reconquista ” agenda, both of which are harmful to taxpaying Californians!
    This November will be a turning point for the future of the state, because Newsom is fiscally LESS responsible than Brown and will accelerate California’s economic demise and the fit will hit the shan faster than before.
    Sadly, all the liberal tech overlords are expanding or outright moving their operations to downtown Denver and the politics that we thought we’d left behind are following us here!
    The Democratic candidate for Governor here is as bad as Newsom and part of “The Gang of Four” wealthy socialist liberals who conspired to flip Colorado as described in “The Blueprint”…
    PLEASE elect John Cox so I can consider moving back home to Ventura County…it’s my home and I’m a refugee here…

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