SB 640 by Hertzberg: $123 BILLION Tax Increase—NOT a Typo

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By Stephen Frank

SB 640 by Hertzberg would force you to pay a sales tax on your divorce proceedings, shoe repair, tax preparation by a CPA.  In total, Hertzberg—claiming to be a moderate Democrat, wants to raise $123 Billion in NEW taxes every year.  Imagine if he was a liberal, this bill more than doubles the tax burden on Californians and upon passage throws the State into a Depression, bypassing a recession.  See bill here. 

“The California State Board of Equalization (BOE) released an estimate today indicating that California’s state and local governments may receive approximately $122.6 billion in new revenue if tax was collected on services that are currently non-taxable. Of that amount, $60.9 billion could go to the state, with $61.7 billion for city, county, and other local government entities. The estimate assumes a statewide average sales tax rate of 8.42 percent.

Currently, sales tax generally only applies to the retail sale of tangible personal property, such as a bicycle. Most services are not taxed, except for required services related to the retail sale of tangible personal property, such as assembly charges associated with the retail sale of a bicycle.”

For people in Los Angeles where the tax is almost 10%, only the poor and illegal aliens will remain—most of the middle class and rich will leave as quickly as possible.  If I wanted one bill to kill off what is left of California, I would support SB 640.  Note the media has given this NO publicity.

Related: BOE Estimates Tax on Services May Generate $122.6 Billion for California