When the state of California raised the sales tax by another 1% on April 1, 2009 I was pretty pissed. What kind of government expects their residents to pay a whopping 10% tax on everything they buy? Pedro doesn’t want to pay $200 in taxes on his $2,000 60-inch LCD TV. Nancy shouldn’t have to pay $300 more on her $3,000 diamond encrusted bracelet. And I certainly don’t want to spend $5,200 in taxes on a handsome $52,000 BMW! That’s just ridiculous!
We the people of California deserve our luxury items just like every other parrot-brained consumer in America. Who’s to dictate what we can and can’t waste our hard earned money on? Certainly not some bureaucrat in Sacramento counting all his money under the table, no way!
GOVERNMENT WANTS YOU TO SAVE WHILE THEY SPEND
I was angry about the mismanaged state of our budget and so I went on strike. I cut down my purchases so drastically that by April, 2010, one year after the sales tax raise, I literally had over $20,000 in extra spending money in the bank. You see, I figure I spend about $20,000 a year for the past 5 years on stuff. This stuff includes automobiles, watches, shoes, clothing, musical instruments, computers and so forth.
I could accept paying 8.5%, or $1,700 in taxes on $20,000 a year in stuff. But, I drew the line at 10% and wasn’t willing to support government waste, greed, and mismanagement by contributing $2,000 a year in sales tax. I’d rather just laze around and demand government help than contribute to a lost cause so I stopped consuming in California.
The $1,700 in California sales taxes I paid on average for the past 5 years literally declined by 95% last year. Whenever there is something to buy in California, I think about the 10% sales tax and get sick to my stomach. I end up putting the item back on the shelf and walk away.
THANK YOU CALIFORNIA
I just want to formally thank California for jacking up taxes so much. It’s great that whether one is poor or rich, they are still going to have to pay the same 10% sales tax on basic necessities. So thoughtful of you guys! Without government mismanagement and corruption, I wouldn’t be $20,000 richer today. I would have spent merrily all along, not thinking about where the tax revenue is going.
So thanks again guys for helping me save a boatload of money over the past year. You guys might as well increase the sales tax to 30% for all I care. You’ll really crush your tax revenue by causing a halt in spending. Not only that, you’ll just have people move out of California. Washington, here I come!
Tax Savings Recommendation
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Updated for 2017 and beyond. Income taxes are set to come down under President Trump. As a result, those who contributed to their Roth IRA or Roth 401k and planned on retiring in 2017 – 2021 had wrong tax expectations.