Los Angeles County implemented a new sales tax hike of 0.5% effective October 1, increasing the annual cost for a typical family by $200 or more. The ballot measure was promoted as addressing potential cuts to Medi-Cal funding but has since been criticized for being vague about how funds will be allocated and potentially allowing misuse of money intended for healthcare into the county’s general fund. Critics argue this adds financial strain on residents in one of America's least affordable areas, further pushing Californians toward states with lower sales tax rates like Texas (8.25%), Arizona (5.6%), Nevada (6.85%), and Washington (6.5%).
Written locally by qwen2.5:14b on 2026-10-02,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
A typical LA family will have to pay $200 per year, or more, to LA County in additional taxes this year — thanks to the new sales tax hike that went into effect Oct. 1.
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that → have → effect
In June, the voters of Los Angeles County approved Measure ER, to raise the county sales tax by 0.5%.
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voters → approve → %
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Report → start → news
The supporters of tax increases always say there is either some crisis being addressed, or some great humanitarian cause being confronted.
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supporters → say → increases
They never are forthright about the amount that will be raised or what the cost is to the average taxpayer.
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cost → raise → taxpayer
In this case, the cause was the supposed “massive” cuts in Medi-Cal funding coming from the federal government.
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cause → suppose → government
Those assertions came before there were significant efforts to uncover fraud in the program.
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assertions → come → program
Since that time, extensive fraud has been discovered in pharmacy billing, hospice billing, and other provider charges.
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fraud → discover → billing
The measure was formally put on the ballot by the county’s Board of Supervisors.
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measure → put → Supervisors
In reality, the sponsors were a laundry list of organizations that would be benefiting from these funds as described in the measure.
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that → benefit → measure
The funds are not going to be segregated for health care, as described in the ballot measure.
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funds → go → measure
The monies go into the county general fund.
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monies → go → fund
That means they are in a slush fund, where by definition they can be used for whatever purpose the supervisors deem fit.
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supervisors → mean → purpose
And if the federal funding is not cut to the level that the supporters of Measure ER told the voters it would be, the new sales tax receipts can be spent on anything.
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receipts → cut → anything
While the Democrats are making the cost of living the focus of their 2026 campaign, this new tax certainly does not make things more affordable for the taxpayers.
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things → make → taxpayers
The LA area is frequently ranked as the No. 1 worst area for affordability in the country.
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area → rank → country
This additional cost will just be thrown on the bill pile.
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cost → throw → pile
With the average family income of $128,700 in the county, we can suppose that about $40,000 of that is subject to sales tax, and the annual cost of the new sales tax hike will amount to an additional $200 per year.
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cost → suppose → year
Some may think that is not a lot, but again — throw it on the pile.
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that → think → pile
When you are already paying about $3,900 a year in sales taxes, why would you want to pay more?
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you → pay → more
And the $200 does not include big-ticket items like automobiles, where the additional tax on the average car would be $250.
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tax → include → car
California already has the second-highst cost of living, after Hawaii.
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California → have → Hawaii
California already has the highest gas tax.
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California → have → tax
These are the kind of costs that are already pushing Californians to move to other states.
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that → push → states
If you take the sales tax rate of LA County and you compare it to the top states Californians are currently relocating to, then you get a clearer picture.
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you → take → picture
As you can see there were already significant savings in other states before Oct. 1.
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you → see → Oct.
Raising the local sales tax rate makes LA even less competitive.
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LA → raise → rate
The people who wanted this tax ran their fear campaign and convinced the voters that this needed to be passed.
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this → want → voters
Out of two million voters, the Measure won by less than 26,000 votes.
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Measure → win → votes
The measure says it is only for five years, but does anyone really believe that?
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anyone → say → that
The powers-that-be will run another fear campaign, extending the new rate to make it permanent.
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it → run → rate
It has increased 2% in 25 years.
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It → increase → years
Does anyone believe a rate reduction will happen in five years?
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reduction → believe → years
Bruce Bialosky, a former presidential appointee, is a certified public accountant specializing in taxes.
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Bialosky → certify → taxes
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