San Diego City Wire

Senate Minority Leader Brian W. Jones from San Diego has issued a warning to Californians about anticipated tax increases and rising costs in 2025, attributing these changes to policies implemented by Governor Gavin Newsom and Democratic lawmakers.

Jones highlighted three key areas where Californians can expect financial impacts:

Firstly, small businesses will face higher payroll taxes. Each business is expected to pay an additional $21 per employee in 2025. This increase comes as a response to the state's need to repay a $20 billion debt borrowed from the federal government after losing $33 billion in unemployment fraud during the pandemic. Instead of using California's $100 billion surplus in 2022 to address this debt, Jones claims that Newsom and Democrat lawmakers chose other political expenditures.

Secondly, gas prices are projected to rise significantly, with an estimated increase of 90 cents per gallon. A study by USC suggests that the average Californian will need an extra $1,000 in 2025 just to maintain their current level of spending on gasoline. This surge is attributed to new regulations and tax hikes set by the Newsom Administration affecting the gasoline market starting next year.

Lastly, there will be increased withholding from workers' paychecks due to Senate Bill 951 passed in 2022. For instance, individuals earning $100,000 annually will see an additional $100 withheld for taxes.

Leader Jones expressed his concerns: “I am deeply concerned that Californians will face sticker shock and be unprepared for the increased taxes and costs coming in 2025, all courtesy of Gavin Newsom and Democrat lawmakers’ reckless policies over the past few years.” He urged Democrats to reconsider their approach: “In 2025, I challenge my Democrat colleagues to change course and deliver good news to Californians by cutting taxes instead of raising them."

Republican lawmakers plan to continue advocating for solutions that do not financially burden those least able to afford it.