Earlier this year, Californians saw an increase in their state sales tax. On the average, most counties saw it increase to 8.75% or 9.25% on the average. Some cities are actually seeing a combined state and local sale tax of 10.25%!!
OK, I get it. The state is in financial crisis and needs to generate funds to get us out of this mess.
But the other day, as I was ordering something from Amazon.com, and something clearly came to mind: the item I ordered, with free expedited shipping by the way, was coming to me with NO SALES TAX.
Then it hit me: This item is coming from out of state.
Then it hit me again: With sales tax being almost 10%, I think I'm going to order whatever items I need online, and from out of state to save me money in this economy.
Then it hit me for the 3rd time: Uh-oh. I don't think our state legislators thought this one through very well.
I'm not the only person in the state who is going to take this approach. And most importantly, this will drive retail consumer purchases out of state quite a bit.
So coming full circle, tell me if I'm wrong, but it seems pushing sales tax to the 10% brink may in fact have been counter-productive to California's economic crisis.
