There’s temporary and then there’s temporary.
Most legislators, it seems, tend to approach temporary tax raises as if slapping the label on it somehow makes it okay… You know, the old “we’re only doing this for a little while, just to tide us over and then we’ll put things back the way that they used to be” trick. Wink, wink, nudge, nudge.
Like in Philadelphia. And in Pennsylvania. And in Washington and North Carolina.
And then, *bam.*
Voters forget all about the “temporary” tax and the increases become permanent. It’s a practically painless increase, politically, because nobody notices. It happens all the time.
Which is exactly why when it doesn’t happen, it makes news.
On Friday, California’s “temporary” sales tax increase actually proves to be just that, temporary. The penny tax hike, which took effect in 2009, expires. And brace yourself: it’s really expiring. As a result, California will see the most rare of events in the state: a drop in taxes.
Of course, you know it wasn’t all smooth sailing. Governor Jerry Brown (D) and several in the legislature wanted to make it not so temporary this year. The votes weren’t there, though, so they couldn’t pull off an extension. They’ve signaled that they’ll try again next year but you and I know that’s a different political animal. By next year, folks will have gotten used to lower taxes. And then, instead of merely extending a tax provision, they’ll be raising taxes. Nobody wants to do that.
But for now, there’s a drop in taxes for the Golden State. If you’re shrugging your shoulders and thinking, “Heh, what’s the big deal about a penny?”, let me give you some perspective. The estimated savings for taxpayers? Nearly $6 billion for the year. That’s a lot of suntan lotion and teeth whitener.
So, Californians, go, spend. Enjoy your tax cut.
