Newsom is directing his state to pursue “strategic” relationships with countries announcing retaliatory tariffs against the U.S., urging them to exclude California-made products from those taxes.
It sounds like he wants foreign countries to do California a favor without getting anything in exchange (and even that might be unconstitutional). Or is there something that he has the authority to offer in exchange which I’m missing?
CA sales tax averages 10%. While it’s nowhere on the scale of the tariffs, it could offset the impact significantly if reduced or eliminated for goods coming from specific countries.
Additionally, the government of CA has enormous purchasing power. Directing where that money goes could serve to be a powerful tool in mitigating the trade war.
Plus, one element that most folks don’t think about is the financial weight of the CalPERS retirement fund. This organization controls a huge amount of investment money subject to state regulations as to where its invested. Opening up that revenue stream to select foreign companies could be a mighty tasty carrot.
Not disputing most of you point, but the sales tax in California does not average 10%. I live here, and don’t think I’ve ever paid more that 9. Most of the time, it’s lower than 8.
It sounds like he wants foreign countries to do California a favor without getting anything in exchange (and even that might be unconstitutional). Or is there something that he has the authority to offer in exchange which I’m missing?
CA sales tax averages 10%. While it’s nowhere on the scale of the tariffs, it could offset the impact significantly if reduced or eliminated for goods coming from specific countries.
Additionally, the government of CA has enormous purchasing power. Directing where that money goes could serve to be a powerful tool in mitigating the trade war.
Plus, one element that most folks don’t think about is the financial weight of the CalPERS retirement fund. This organization controls a huge amount of investment money subject to state regulations as to where its invested. Opening up that revenue stream to select foreign companies could be a mighty tasty carrot.
Not disputing most of you point, but the sales tax in California does not average 10%. I live here, and don’t think I’ve ever paid more that 9. Most of the time, it’s lower than 8.
It widely varies by county.
And by city. Ya, there are some cities where it’s over 10. I’m just saying that’s not nearly the average.