Los Angeles officials propose tax increase that would drive up costs for groceries, dining and shopping

Two Los Angeles County supervisors are backing a new tax hike on residents that would spike the cost of almost everything — including shopping, dining out and other everyday purchases across the county.

Supervisors Hilda Solis and Holly Mitchell are pushing a half-cent sales tax they say would help counter looming federal health care funding cuts that threaten Medi-Cal services.

But because the tax would apply to retail sales and restaurant purchases, it was quickly trashed by opponents who say it raises prices for families regardless of whether they use affected health care services.

“Why should less affluent Los Angeles County residents be required to pay more for clothes, school supplies, and motor vehicles, especially when the sales tax burden is already so high?” Marc Joffe, a visiting fellow at California Policy Center, wrote in an opinion piece for the Daily Bulletin.

Joffe further points out that voters approved a sales-tax hike just two years ago.

If the bill is approved, it would further burden residents already struggling with high living costs, pushing Los Angeles County’s combined sales-tax rate above 10% in many cities.

Solis and Mitchell are bringing the proposal before the Los Angeles County Board of Supervisors on Tuesday to decide whether it will be placed on the June 2 primary election ballot.

“I do not take lightly asking fellow residents to consider imposing a one-half percent retail tax,” Mitchell told CalMatters. “This option is on the table because what’s at stake are safety net services unraveling for millions of residents — which would come at an even greater cost for the largest county in the nation.”

Susan Shelley, vice president of communications for the Howard Jarvis Taxpayers Association, called the proposal “unreasonable,” saying sales taxes are regressive and hit those least able to afford them.

“They just immediately reach for tax increases,” she told The California Post, adding that the county isn’t addressing root causes like fraud and overspending.

“Taxes are already very high, and people are very burdened by it.”

Shelley accused the county of trying to tax their way out of their problems.

The Howard Jarvis Taxpayers Association is a nonpartisan watchdog dedicated to protecting Proposition 13 and opposing tax hikes in California.

The new measure would also keep taxes raised for five years, which supporters, including unions and health care advocates, say would raise roughly $1 billion annually to fund county hospitals and clinics, specifically targeting residents losing Medi-Cal coverage.

Mitchell said the proposed tax would remain in place until Oct. 1, 2031, and would be subject to public oversight and audits.

“This is a last-resort option for the times we’re facing and for voters to make the final call on,” Mitchell said.

However, taxpayers aren’t buying into that.

“This is a broad-based tax that will never be repealed and has no specifics as to how it will be spent,” LA county taxpayer and real estate broker Bruce Bialosky told The Post.

Health care officials backing the measure argue the tax is necessary to prevent cuts to critical services.

“The ballot measure that we are proposing is an urgent and necessary step to stop the damage and protect access to life-saving care,” Louise McCarthy, president and CEO of the Community Clinic Association of Los Angeles County, told CalMatters. “The stakes right now could not be higher.”