California Senate Minority Leader warns of financial strain from 2025 tax and cost hikes
Sacramento, California – Senate Minority Leader Brian W. Jones (R-San Diego) in an urgent message to Californians warned that rising taxes and increased spending resulting from Democratic policies might cause major financial pressures in 2025. His remarks outlined a set of upcoming reforms he says would disproportionately affect families, small companies, and individual workers across the state.
Leader Jones first pointed out a significant tax hike for small businesses, citing a required extra $21 per employee in payroll taxes set for 2025. Under Governor Gavin Newsom’s direction, a startling $33 billion lost to unemployment fraud during the pandemic is meant to be addressed financially with this climb. Jones claims that although the state borrowed $20 billion from the federal government to handle this issue, it chose not to apply California’s $100 billion surplus in 2022 to help to reduce the debt, therefore burdening small businesses.
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Gas prices will also rise sharply for Californians; projections point to a 90-cent hike per gallon. According to a University of Southern California analysis, the typical resident will have to make extra $1,000 annually to offset the increase in fuel costs in 2025. Jones linked this increase to new taxes and laws put forward by the current government, likely to be implemented.
Direct financial changes will also come from California workers’ paychecks. Senate Bill 951, which passed Democrat legislators in 2022, will cause payback withholdings starting in 2025. For example, those making $100,000 a year will have $100 total deducted from their paychecks; the exact amount may vary based on their taxable wages.
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“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,” said Leader Jones. “Democrats must stop treating small businesses and hardworking families like ATMs to fund their partisan agendas and cover their fiscal mismanagement.
“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 will keep pushing for real solutions that don’t drain the wallets of those who can least afford it,” Leader Jones added.
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As the costs and stakes grow for Californians, Leader Jones’ warning prepares the ground for a potentially contentious political and economic debate.
