March 10, 2010
Errors in Judgment
In the February 2009 budget agreement, the California Legislature passed a $12.8 billion dollar tax increase. They raised licensing fees, sales tax rates, and income tax rates. Vehicle licensing fees were increased by 1.15%. State sales tax was increased by 1%. Personal income tax was increased by 0.25%. The highest rate for personal income tax is now 9.55%. We now have a 10.33% millionaire tax. The alternative minimum tax was increased to 7.25%. The California Legislature did this during a recession.