California Democrats - Taxing the Poor to Pay for the Deficit
Recently, in California, the former governor, Gray Davis, signed legislation that was passed by the Democratic congress that raised the tax registration fees on automobiles.
The idea was to help raise money for the state coffers. It became necessary to raise the money because of gross mismanagement of the state by the Governor and the Congress who never saw a project that they didn't want to spend out money for.
As predicted, by me, that has actually lowered the incoming revenues for the state. You see, automobile dealerships aren't selling very many cars, these days. State wide, in fact, auto sales have declined by 33%. So, the fees were tripled and the auto sales dropped down by a third. This means that, while the registration fees are still bringing in a few extra dollars, they are losing millions in sales tax.
Too, it means that the people who sell cars are making less money which means that they are not paying as much in income tax. Then there are the car dealerships, which are not selling the cars, meaning less tax revenues from them. Then, to top it all off, the car dealerships aren't buying cars, meaning even less taxes for the state.
If the car dealerships aren't buying or selling cars that means that the car manufacturers aren't selling cars, meaning even less tax revenues. And then, since they can't sell cars, they will have to lay off workers. All of those workers will have to get unemployment. That means that, instead of paying income tax, they will be collecting unemployment.
Uh oh, that means that instead of getting tax revenues, the state has to pay out money.
Now, wasn't the tripling of the car tax supposed to increase revenues?
But, I digress from the whole point of this rant. The real point is how this tripled car tax is a tax on the poor, middle and working class people of the state.
Frankly, the rich aren't really affected by the car tax tripling. It is just a drop in the bucket for them. If they can afford a Hummer or a Ferrari, they can certainly pay for the registration fees. Hell, that's a small percentage compared to what they have to pay for gas.
The people who are really affected are the working class mooks, like me and the people who can barely afford a car, let alone a tripled registration fee. Especially in a depressed economy.
That didn't stop the Democrats in California's congress from passing the tripled car tax. It didn't stop our Democratic governor from signing it into law. Aren't these the same people who bitch that the Presidents tax cut was a tax cut for the rich? Aren't they supposed to be for the working class and the poor? If they are, why are they trying to hurt the working class and the poor?
And how can they keep hollering that an across the board tax cut is a tax cut for the rich? I mean, even if the tax cut was just for the rich (it wasn't) it didn't hurt the poor or working class. However, tripling the car tax affects, poor and working class people while hardly affecting the rich.
So, to sum up - a tripled car tax helps no one and hurts the poor and working class. A tax cut hurts no one and helps many.
Somehow, this has passed most people by.
