Sensing an opportunity to both bring some Los Angeles County retail shoppers across the county line into Simi Valley and also to make a political point about taxes, Simi City Councilman Glen Becerra today purchased a full-page ad in the Los Angeles Daily News to point out that purchases now cost a penny and a half less on the dollar in Simi than they do in L.A. County.
The reason? The latest L.A. County sales tax increase took effect today, lifting the rate to 9.75 percent. The rate in Simi Valley is the basic statewide minimum, 8.25 percent.
"It's about giving people an opportunity to spend their money where it will go the farthest," Becerra told me today. He said he paid $2,300 from his city council campaign account to pay for the ad.
It's about time that the cost of things gets some attention. Let there be civil war if that's what it is.
The sales tax increase will fund transportation projects in LA County. I'd be in favor of a law that bars the holders of such selfish, parochial views as the councilman from using those projects.
Campaign Account money is always cheap - I would have been impressed if it came out of his own pocket. It is kind of like Tony Strickland standing up and saying he would donate $10,000 to the local stop prison effort and have it come out of his campaign account. It smacks of trying to achieve glory at no personal cost.
One of the few checks we have on leviathan government is the ability to "vote with our feet". Dictatorships typically restrict emigration, to prevent their victims from fleeing to freer lands. You can generally tell the relative levels of liberty between two nations by the direction of population flow. And the United States has historically been the country that oppressed and downtrodden people flee to. We benefit and tyrannies are weakened by this "brain drain".
So it also is among the states within our country. When taxes and regulations in some states (e.g., California) become too heavy, the most productive people move to more congenial locations (e.g., Nevada). They take their skills and entrepreneurship and money with them. Raising taxes even higher to make up for the loss becomes counterproductive, as it just accelerates the outflow.
So it also is among localities within the states. A city like Los Angeles, with its high taxes and corruption and mismanagement and poor services, is going to lose out to well managed and lower tax cities like Simi Valley. Glenn Becerra's ad to publicize the difference will not only benefit Simi Valley in the short run, it will also benefit Los Angeles in the long run if it pressures L.A. to begin long-overdue reforms. And if L.A. remains obstinate, people there can "vote with their cars" and come shop here.
That ad isn't going to work on anyone who has seen the price of gas lately. Good luck driving to another county to save a few cents.
I know Republicans hate taxes, but talk about being penny wise and pound foolish.
Let's see - go to Best Buy or Costco in Northridge vs Simi to buy a $2000 plasma/LCD TV. $30 less in Simi worth 15 minutes and $3.50 in gas?