The California Restaurant Association spear-headed the idea: a one cent sales tax to pay for expanded health insurance. And recently, the California Retailers Association and the California Small Business Association have signed on, too. Restaurant Association President Jot Condie says the tax is more feasible than the fees businesses would have to pay under the Governor’s and the Democrats’ plan – but it would still affect eateries and stores:
“Retailers and restaurants are probably together the largest payers of sales tax in the state because retailers and restaurants are also purchasing a lot of items that are taxable.”
Condie says the tax would generate 5 billion dollars a year. They hope to put the measure on the November’s 2008 ballot. The Assembly Republican Leader said he wasn’t a fan of the idea – and his Democratic counterpart said while it was a noble gesture, it passed the buck on to customers.
The Restaurant Association hopes to put the measure on next November’s ballot.