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Sales and use taxes in California are among the highest in the United States and are imposed by the state and by local governments. Sales taxes are regressive. Local sales tax increases also create geographical variations in sales tax rates which can place local businesses at a competitive disadvantage. Poor families pay almost eight times more of their incomes in sales taxes than the best-off families. Local sales tax rate increases also create geographical variations in sales tax rates which can place local businesses at a competitive disadvantage.

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