Vallejo seeks to expand utility tax to cell phones
California is desperate for tax revenue. We've been slowly starving ever since Prop. 13 was passed in the late seventies. This ballot proposition reduced existing taxes on homes by 60%, while ensuring that any new homes or businesses built would pay a helluva lot more. It also made it so the state congress couldn't raise taxes without a two-thirds majority, which has enabled a vocal minority of Republicans (who hold just slightly more than one third of the Congress) to prevent any tax increase, ever. This has led to massive job cuts, stalled growth, furloughed workers. Our college tuition has increased something like 300% in the last decade.
And now cities--desperate to pay for their basic services--are going to tax texting.
California, we need to raise taxes. We're the sixth largest economy in the world. We can do this. We could be so awesome.
Taxing text messages? Some Vallejo voters are saying OMG.
The North Bay city, with its ever-shrinking revenue stream, is asking voters Tuesday to expand its utility tax to include text messages, private phone networks, pagers and voice-over-Internet services.
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Measure U would lower the utility tax from 7.5 percent to 7.3 percent of a resident's total bill, but would widen the services it covers, from gas, electricity, water and traditional land lines to modern telecommunications.
The tax gets complicated when it comes to things like text messages. Some consumers pay a flat rate, after all, while others pay by the text.