Sales taxes are regressive, in that lower income people pay a higher percentage of their income in sales tax than do higher income people. In Sacramento area, a new transportation sales tax measure is being talked about, whether for transportation in general, or for transit specifically. No proposals have been made, but there are certainly many discussions in many arenas.

The San Francisco Bay Area is also having the same discussions. There is legislation to authorize a transportation sales tax measure in up to five Bay Area counties. A recent KQED article (Proposed Transit Tax Should Be Paid by Businesses, Not People, Progressive Group Says) talks about discussions, and an alternative proposal to use a business gross receipts tax instead of sales tax. It is true that any tax ultimately comes out of the pockets of citizens, but a gross receipts tax is better distributed and not as regressive.

I have a concern that politicians again and again go to the default of sales taxes because it seems easier to sell. But sales tax rates are already very high, and there is increasing evidence that voters will not go for a higher sales tax rate, no matter what the topic or the benefit.

I’ll write more about funding options in the future. Past posts include Is sales tax for transportation the wrong approach?, transportation funding ideas, and many, many others under the category: transportation funding. I was amazed, looking back, at how many times I’ve posted about transportation funding and tax measures.