As the California State Assembly gets ready to kick into high gear, one Assemblyman is pledging to stand firm against new, burdensome taxes that would stifle economic growth in the state.
“At the end of last year, some in Sacramento tried to force through new taxes on everything from beverages to gasoline as a way to fund pet projects,” wrote Assemblyman Matthew Harper in a Los Angeles Times Op-Ed. “Instead of asking for more money from working Californians, we should focus on planning for future financial stability by paying down our debts and saving in the rainy day fund.”
It seems every time government faces a budget problem, its first reaction is more taxes. It’s encouraging to see an elected official recognize that the government needs to trim its budget fat instead of taxing things like beverages and increasing people’s grocery bills.
Harper also highlights the effect of taxes on the state’s job creators, saying “Our state government has a habit of choking small business with costly and burdensome regulations.”
Consider that California’s beverage industry has a direct economic impact of $17.1 billion, paying $2.5 billion in wages to California workers with beverage production and distribution jobs. Additionally, more than 87,500 workers in restaurants, grocery stores, convenience stores, movie theaters and more depend, in part, on beverage sales for their livelihoods.
Politicians may mistakenly think that taxes on beverages are an easy way to generate revenue, but they must recognize who will really pay the price – California workers, businesses, consumers and ultimately, the broader economy.
To find out more about how taxes harm local businesses and consumers, check out The Truth About Beverage Taxes.