Senator Doug LaMalfa (R-Richvale) and Assemblyman Jim Nielsen (R-Gerber) marked today with press conferences around the district celebrating the return of lower tax rates. In February of 2009 the legislature instituted a series of tax increases and asked the people to vote on a tax extension in May of that year. Proposition 1A on the ballot would have extended these higher taxes for an additional two years but was defeated by the voters by a near 2-1 margin. During this year's budget process Democrats sought to extend the "Temporary Tax Increases" totaling $58 Billion over the next five years while Republicans held together to successfully oppose the tax increases only plan.
"Finally, the taxpayers are allowed to keep a little more of their own money," said Senator LaMalfa. "These tax reductions are the real silver lining of this year's budget. While the legislature spends most of its time devising new regulations, fees and taxes, this victory for the taxpayers is a key step in moving California in a positive direction for business and jobs."
LaMalfa and Nielsen held press conferences at local auto dealers today in Chico and Redding to mark the tax reductions.
"This is the type of tax relief that makes a big difference to those living paycheck-to-paycheck," said Assemblyman Nielsen. "These tax increases would have hurt all taxpayers, and it would have continued the out-of-control state spending, and clearly were not needed"
Families will see at least $1040 in tax savings each year from the reductions. As of today the sales tax will decrease by 1%, the car tax will decrease by 0.5%, income taxes will decrease by 0.25% and the Child Tax Credit will be boosted to $309 from $99.