“It’s like putting another nail in the coffin, it really is”

What do big-government politicians do when they’re unwilling to make tough spending decisions in the middle of a recession? Why, raise taxes of course. Today’s installment of misguided, boneheaded tax policy comes from California, the state that has taxed and regulated itself into oblivion.

As the LA Times reported in December, a report from the California Department of Finance shows that more people are leaving California than are moving in. It’s the fourth year in a row that people are voting with their feet.

Despite this telltale and ominous economic sign, On April 1, California is hiking the sales tax. As you might guess, business owners understand the reality of what’s coming. From the LA Times (emphasis is mine):

But a strong end of the month could be replaced by even tighter consumer spending once the tax hike kicks in. Although the increase is relatively small, retailers worry it could deliver yet another blow to the battered sales business, especially for merchants who peddle big-ticket items such as cars, furniture and electronics.

“Anything that’s going to make it tougher for us to sell cars, we’re not happy about,” Theroux said. “We recognize that it’s a necessary evil but at this stage in the game, it’s just making things more challenging because it’s adding cost to the car that’s being passed on to the consumer.”

For stores that have seen sales slump in recent months as consumers limit their discretionary spending, the increased tax could cripple business even further.

“It’s like putting another nail in the coffin, it really is,” said Ivy Fradin, owner of PJs Sleep Co., a furniture and mattress store in the Fairfax District. “The government tells you to spend and gives you money, but when you go out and spend, we’re going to charge you more.”

Indeed. This is only going to make things worse for California residents. I have relatives in southern California. Based on their experience, California is no place for middle-class families trying to prosper. In other words, California is no place for the vast majority of Americans.