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CA May Institute Tax Hikes on Take-Out Food and Personal Services

Would Tax Hikes Cause You to Change Your Spending Habits?

The minimum sales tax in California is 7.25 percent, but it varies by county — here in San Francisco it's 8.5 percent while Los Angeles has a sales tax of 8.25 percent. Last week Governor Arnold Schwarzenegger announced that his administration is considering "tax hikes on personal services, some prepared foods and other items" in an effort to close the budget gap.

The personal services include things like personal training and attorney's fees, and the prepared foods could include items that economists deem unnecessary like mochaccinos and artisan goat cheese pizzas. Currently, CA taxes food consumed at a restaurant and not food taken out with the intention of being eaten at home. The "other items" could include already pricey movie tickets.

Would tax hikes on these items make you think twice before using these services or buying food and beverages to-go? Even if you're not a CA resident, share your two cents!


Join The Conversation
aimeeb aimeeb 9 years
This makes me want to move to NH, no tax.
shanimalcracker shanimalcracker 9 years
This is difficult to handle because California's 8.25% (where I live) tax rate isn't exactly low either. This definitely makes a big difference on large purchases or even when purchases accumulate. I just really wonder how much people will be paid to determine what is "unnecessary" and what criteria will be used for deciding this!
bellaressa bellaressa 9 years
I'm with you carhornsinapril; it's like getting double taxed.
carhornsinapril carhornsinapril 9 years
i don't think there should ever, EVER be a food tax.
bellaressa bellaressa 9 years
I'm with you emily60608, I also live in Chicago and the tax is horrible. We won't even get into food tax.
emily60608 emily60608 9 years
I live in Chicago & our sales tax has always been high... now its up to 10.25% !!!!!! It definitely makes a difference when shopping!
meumitsuki meumitsuki 9 years
Wow, taxing using an attorney? It seems to me that most poor people in bad situations (like the housing problems) could use a good lawyer, but already can't afford one. And who is the government to decide what is/is not necessary. Get out of people's personal business and figure out how to balance a checkbook, we all have to.
Cassandra57 Cassandra57 9 years
California's imperial rulers should consider cutting some of their ineffective pet projects before they impose new burdens on the peasants! :MOB:
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