Progressives Pushing Regressive Taxes In California

Why do progressives love regressive taxes?

The news that, as of July 1, several cities in very liberal Alameda County have increased their sales tax rate to a staggering 10.75%, got us thinking about how many of California’s recent tax hikes have been regressive. In fact, despite the claim that progressives like to “tax the rich,” many of the big tax hikes seen in the state — both at the state and local level — fall disproportionately on the working poor and lower middle class.

Here, it is important to define the terms. According to the Tax Foundation, a regressive tax is one where the average tax burden decreases as income increases. Low-income taxpayers pay a disproportionately high portion of their income in taxes, while middle- and high-income taxpayers pay a relatively low one. A progressive tax, on the other hand, is one where the average tax burden increases with income. High-income families pay a disproportionate share of the tax burden, while low- and middle-income taxpayers shoulder a relatively small tax burden.

Sales taxes are particularly regressive.

Matthew Gardner, executive director of the left-leaning Institute of Tax and Economic Policy agrees that sales tax hurts the poor most, noting that they end up taking a bigger chunk of change from people that have smaller sums of money and slower income growth.

A major factor in this is that a higher percentage of spending by the poor is spent on taxable consumer goods.

To read the entire column, please click here.

Comments

  1. Really??? says

    The bottom line is they do not care, it is about the deceptive power they create and fund.

  2. Greg Perrone says

    There are 3 characteristics or qualities of our politicians (regardless of level) at play here:
    1. They are ignorant of basic economics; such as “There Ain’t no Such Thing as a Free Lunch” meaning somebody WILL pay or the other one that comes to mind, “Businesses do not pay tax…people do.”
    2. They genuinely do not care, mostly because they are not affected by their own policies.
    3. Most have never worked in the private sector or had to be responsible for earning their pay.

    So I ask you, which do you find endearing and most worthy of your vote?

  3. Governor Newsom is doing his part as he continues to do everything possible to INCREASE the cost of electricity and fuels, that drives up (no pun intended) the cost of everything which increases the homeless population.

  4. Our government has failed average citizens To their personal benefit! The most entitled people in California government employees. Good luck California!

  5. Davidlee says

    It’s the socialist way…..One party State..Sad…

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