To take more money from its citizens, the California government has resorted to illegal methods to do so. Known for having the highest tax rates for its citizens, the illegal tax only continues to damage the relationship between the government and it’s citizens.
How exactly can a state government get away with such a tax? The first way is by implementing the tax, hoping the illegality of it is undetectable. The second way is passing a tax being fully aware of the fact it will have to be settled in court. While in court, though, the government can still gather profit from the tax.
One of the most notable examples of the California government cheating on taxes was in 1994 in the city of San Francisco. In the case of Hoogasian Flowers v. San Francisco Educational Financing Authority, the city attempted to create a supplemental sales tax. However, the method they utilized was incredibly illegal-in order to sidestep approval conditions on Proposition 13, and San Francisco created a business entity for the sole purpose of imposing the illegal tax.
In the end, the Court of Appeals saw the transparency of the ploy and the illegality of the tax. However, the government only offered a small amount of money for the damages that followed. Furthermore, the city was never punished for their corrupt actions-San Francisco was allowed to keep revenue gained from the tax, which affected numerous businesses in regards to money loss.
While the example dates back to 1994, nothing has changed for the state government. The fact that the government is utilizing manipulative and corrupt tactics in terms of taxes towards their citizens only highlights how the government is more interested in making money than looking out for their citizens.
