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Brown Bringing Tax Hammer Down On Lumber

Posted by The Master Cylinder on August 2, 2012

Perhaps the state motto should be changed to “The Taxman Cometh. And Cometh. And Cometh.” That’s the animating spirit of state policy under Governor Jerry Brown, whose Adminstration deals with the huge perma-deficit by levying taxes hither and thither without regard to the human or economic cost.

The Brown Administration’s is proposing a budget trailer to “reform” the Timber Harvest Plan by creating a Lumber Retail Sales tax that would be assessed on the purchase of any lumber product at the point of sale.  The funds generated from this tax would be used to fund state and industry regulatory agencies.

At what cost? This proposed tax would target small businesses and do-it-yourself consumers who utilize lumber products. Many of these small businesses, which use lumber regularly, have already been devastated by recent financial events.

Home builders, carpenters and roofers – just to name a few – were very successful during the housing boom, and now many can barely find work.  Under this plan, when these hard-working Californians do find work, their cost of doing business will be even higher. How can any intelligent policy maker or elected official consider this is a smart plan to promote economic recovery.

Why would any administration want to harm consumers and small business by forcing them to pay additional taxes? Is making it harder for a prostrate industry to recover pro-growth or even compassionate? That’s a question the Brown Administration and supporters of this tax need to answer.

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