INCREASED SALES TAX IN CALIFORNIA WORRY FILIPINO BUSINESS OWNERS AND CONSUMERS

By Henni Espinosa, ABS-CBN North America Bureau

Apr 2, 2013

DALY CITY, Calif. – A recent survey by Thomson Reuters/University of Michigan showed that consumer confidence continued to improve due to more positive signs of expanding employment.  But could this perception be short-lived in California?

Beginning April 1, sales taxes rose in more than 20 cities and counties all over the state and many struggling business owners and shoppers are concerned.

For Lita Gutierrez, the owner of Daly Dollar store, sales tax increases which range from a quarter to a half cent on every dollar of sales, could affect small businesses like hers.

“Shoppers don’t like it.  Every penny counts in a bad economy,” she said.

In the densely Filipino-populated Daly City, sales tax has now reached 9% from the previous 8.5%.

In Los Angeles County, it has increased to the state’s highest at 10%.

Diners at Pampanga Cuisine, a Filipino restaurant, said the sales tax increases are making them think twice about their spending.

“Those who will be greatly affected are those with modest income.  It does add up,”  Lorenzo Sagabaen said.

But restaurant owner Annabel Guevarrais not too worried.  “If what you serve them is good, people will keep coming,” she said.

Consumers buying big ticket items like cars will bear the brunt of sales tax increases.

Jenny Ocampo and her family who plan to buy a $14,000 van are expected to pay close to $1,300 in sales tax.

“We want to save money.  But if it’s a necessity, and we need to buy it, what can we do?” she said.

The sales tax increases are in addition to the quarter percent tax authorized when California voters approved Proposition 30 in November.

Prop 30 is expected to generate an additional $6 billion a year and is intended to help fund schools, community colleges and public safety services in California.

You may contact Henni Espinosa at henni_espinosa@abs-cbn.com for more information.

4 Comments on this post.

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  • Delia
    3 April 2013 at 7:24 am - Reply

    Is’nt it what Obama campaign for ? A tax increase , Californians has voted for it and now its worrying ? Wow , for the love of Obama i hope you all get what you ask for . Your salary shrink , your tax rise . Perhaps , people need to think over and vote for future not for popularity and adorement of a person . All will endure the hardship and pain for this Community Organizer commander in thief are doing .

    Seniors will get less SS pensions , retiiree may lost thier pension , health care are scares and i doubt if will live to see a day light to see our freedom again . Our belief are in constant attack , our salary , property , bussinesses , soon will be told what to eat , what to say , what to drive . Its an ending choas happening to each one of us . Even our privacy is invaded through cell phone and watching our bank account . Even Millioneir’s and rich are now complainning they have to pay 70 % Tax , this is a big chunk of your hard earn money. A person that earns $100,000 a year will now net to $30,000 , so for every dollar earn 70 cents goes to you taxes, theres no way of scaping it either , cause government will confiscate it through paychecks.

  • av
    3 April 2013 at 8:00 am - Reply

    california has been historically high on taxes and cost of living, so this news isn’t a surprise at all. Californoa is a democratic state for those of you who do not know that informatio. Tha is the eason why many paeople leave califorornia due to high taxes and cost of living. Politics aside, Califirnia is a nice place to live if you can afford to live there.

  • Delia
    4 April 2013 at 8:10 am - Reply

    California loves illegal aliens in fact there are more illegals on public assistance than there are workers. 17 Billion is probably an understatement. California is bankrupt because of it.

  • av
    4 April 2013 at 9:33 am - Reply

    I arguably agree that IF california isn’t brioered with Mexico, the number of illegal immigrants wouldn’t be that much, rathr it’d be more Pinoys as it’s close to Philippiines, first stop is Cali beiofre heading out to east.

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