Theme Park, Golf Tax
Raising taxes during a recession makes no sense.
Imposing new sales taxes on entertainment venues (such as Disneyland and Knott’s Berry Farm here in Orange County) and leisure activities (such as golf) makes even less sense.
A proposal from Gov. Arnold Schwarzenegger seeks to do just that. As part of a plan to help close the state’s $42 billion budget deficit for the next 18 months, the governor wants to extend the sales tax to theme parks, golf courses and some services.
But entertainment and leisure are highly discretionary activities. They are first to be deleted from family budgets when it becomes difficult to put food on the table, buy school supplies, pay the rent or make the mortgage payment.
Operators of entertainment industries probably are bombarding the governor with studies that show that raising prices will cost thousands of jobs and millions of dollars in tax revenue for state and local governments.
But the governor doesn’t need those studies.
Instead, just imagine supporting a family on $60,000 per year, having been laid off (or simply fearful of being laid off), and you learn that the cost of a visit to a theme park or a round of golf just went up 10%.
What would you cut from your family budget?
Reed Royalty
President, Orange County Taxpayers Association
San Juan Capistrano
