SACRAMENTO Assemblyman Ted Gaines, R-Roseville, today introduced legislation that would repeal immediately the largest tax increase in state history approved by the Legislature and signed into law last year.
The legislation, Assembly Bill 1700, would repeal the increased sales, vehicle license and personal income taxes that were increased in February of 2009.
Hard-working Californians are hurting today, struggling to make ends meet and provide for their families amidst higher prices and fewer job opportunities, Gaines said. Instead of giving families a break, the Legislature last year made life harder by passing the largest tax increase in state history on the over-burdened taxpayers of our state. Not only has this caused unnecessary pain for so many Californians, but it has also driven jobs away. Increasing taxes was and is the worst thing for our state, and my legislation will give Californians and our economy the boost they need to get back on track.
According to the non-partisan Tax Foundation, Californians have to work harder than the residents of 46 other states to pay their total tax bill each year. Our state currently has the highest sales, corporate and gas taxes in the nation. It also has the third worst business tax climate and the fourth highest personal income tax bracket in the nation.
Assembly Bill 1700 will save taxpayers $8 billion overnight by repealing the following February 2009 budget tax increases that totaled more than $12 billion:
– Personal income tax increase of .25 percent
– Sales tax increase of 1 percent
– Vehicle license fee increase from .65 percent to 1.15 percent
– Child dependent exemption credit reduction from $309 to $98
California families should not have to pay billions of dollars in higher taxes and face the prospect of their jobs disappearing because the Legislature refuses to make realistic choices about our spending priorities and reforming government, Gaines said. Sacramento must become accountable for its spending addiction and finally begin making the necessary cuts our state needs and start living within its means.
Assemblyman Ted Gaines represents the 4th Assembly District in the California Legislature, which includes portions of Sacramento, Placer, El Dorado and Alpine Counties.