Standing Up for Working Families in California

California State Assembly

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6/30/2011

Asm. Steve Knight Marks 'Freedom from Higher Taxes Day'

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Asm. Steve Knight (R-Antelope Valley)

SACRAMENTO - Assembly Republicans today celebrated "Freedom from Higher Taxes Day," which culminates at midnight tonight with the expiration of the temporary tax increases enacted in 2009. Thanks to the efforts of Assembly Republicans to block costly tax increases, the average California family will see $1,040 in annual tax savings beginning tomorrow.

"Independence Day is coming early this year for taxpayers thanks to Assembly Republicans standing together to protect Californians from higher taxes," said Assembly Republican Leader Connie Conway, of Tulare. "Starting tomorrow, families will see an immediate $1,040 in annual tax relief. This is real savings for Californians, especially for those looking to buy a new family car. This is just the boost that car dealers and other small businesses have been seeking in these tough times. We will continue to fight hard to ensure that this freedom from higher taxes is permanent."

Throughout the year, Assembly Republicans fought each attempt by Governor Brown and Legislative Democrats to impose $58 billion in higher taxes on Californians over five years. By standing united to fight higher taxes, Assembly Republicans were able to stop the liberal majority from passing these costly tax increases as part of the majority vote budget plan they approved earlier this week. Going forward, GOP lawmakers said that they would fight any effort to raise taxes to bailout Sacramento.

Members of the Assembly Republican Caucus today went to Downtown Ford in Sacramento to highlight the savings families will see as a result of the expiration of the temporary tax increases. Assembly Republicans will be holding a series of events across the state tomorrow to celebrate "Freedom from Higher Taxes Day" and showcase the real tax relief for working families will see in local communities statewide.

Specifically, state sales taxes will be lowered by one cent, which the Board of Equalization estimates will be a $233 savings for the average California family. The car tax (vehicle license fee) will drop nearly in half, from 1.15 percent of the vehicle's value to 0.65 percent. Based on the purchase of a $20,000 new car in Sacramento County, car buyers would see $200 in sales tax savings and $100 in lower car taxes.

On January 1, each state income tax rate was lowered by 0.25 percent. It is estimated that joint filers making $50,000 per year in taxable income will save $125. The Child and Dependent Care Expenses tax credit was also restored to the pre-2009 level of $309 per dependent, with eligibility based on income levels, which is an increase of $210 in tax savings per dependent.
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