People all around the country are always concerned about the cost of living. Many citizens are feeling the pinch as a result of price increases and tax modifications.
Los Angeles has announced raising the sales tax rate, a decision that is anticipated to have a big effect on both producers and consumers. Nonetheless, the tax initiative will be used to alleviate the city’s homelessness problem.
Grocery prices may rise as a result of the tax hike, but overall, the long-term implications should be favourable.
Los Angeles’s homelessness crisis
In Los Angeles, there are more than 45,000 homeless persons. This figure is thought to be far higher due to varying views on what defines “homeless” and the challenge of accurately counting the number of people experiencing homelessness.
California, which is home to Los Angeles, is home to about half of all homeless persons in the United States. To address the situation, state and local governments have been working hard.
Finding affordable accommodation is one of the largest obstacles facing homeless individuals.
To reduce the number of homeless persons, public policy changes are needed to slow down rent rises, boost the supply of affordable homes, and prevent unjustified evictions.
More money is also needed to increase the availability of social services and rental subsidies, as well as to give homeless individuals employment opportunities.
Los Angeles implements a sales tax to combat homelessness.
Voters in the county of Los Angeles recently passed a new sales tax initiative. In an attempt to solve the homelessness epidemic, Measure H, which was passed in 2017, increased the sales tax by a quarter cent. Measure A will take its place.
Measure A is now scheduled to replace Measure H before its 2027 expiration date, when Measure H was only planned to last until then.
Measure A of Los Angeles County is intended to increase the number of affordable housing units in the county, reduce the number of people who become homeless and live on the streets as a result of mental or substance use disorders, and increase the number of people who transition from encampments into permanent housing, as stated in the county’s Homeless Initiative.
For residents of unincorporated areas that did not enact their own voter-approved sales tax, the new proposal will raise the sales tax from 9.5% to 9.75%.
The remaining 40% of Measure A’s proceeds will be used directly to build new homes, with the remaining 60% going towards homeless programmes in Los Angeles. Regardless of whether their sales tax rate is higher than 9.5%, all cities in Los Angeles County will see a 0.25% tax rise.
Make sure you have a sufficient retirement plan.
The amount of elderly persons experiencing homelessness is one facet of homelessness that many people might not be aware of.
In the United States, 138,098 people over the age of 55 have been homeless, making up over 20% of the total number of homeless people in the country.
According to The National Alliance to End Homelessness, they are also the group experiencing homelessness at the greatest rate of growth, with the number anticipated to triple by 2030.
It is imperative that you start retirement planning as soon as possible. Even though many people depend only on their Social Security income after they retire, it’s important to make sure you have a variety of income streams to help you after you stop working.
You can benefit from compound interest while lowering the risk involved in investing if you put your money into a low-risk fund.
To ensure stability in your later years, it is essential to diversify your retirement income.
