Californians Brace for Financial Strain as New Taxes Loom in 2025

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Senate Minority Leader Brian W. Jones has expressed concerns about potential tax increases and higher costs that Californians might face in 2025 due to policies from Democratic lawmakers. He emphasized that these increases could significantly impact workers, families, and small businesses. Jones criticized the current administration for fiscal mismanagement and urged a shift towards reducing taxes.

One of the anticipated changes is an additional $21 per employee in payroll taxes for all businesses, including small businesses, as a result of past financial decisions during the pandemic. Instead of using a surplus to address debts, the state opted for other expenditures.

Additionally, gas prices are expected to rise by 90 cents per gallon, requiring Californians to earn more just to maintain their current spending levels. This increase is attributed to new taxes and regulations affecting the gasoline market.

Further, Senate Bill 951 will lead to more money being withheld from workers’ paychecks. For example, those earning $100,000 annually will see an increase of $100 in total tax withholding. The exact impact will depend on individual taxable wages.