LA officials push wild tax hike that could send grocery and restaurant prices soaring

Los Angeles shoppers are still adjusting to a county sales tax that already jumped to 9.75 percent in many communities, yet local leaders are now weighing another half‑cent increase that would land squarely on everyday purchases. The proposal is framed as a lifeline for a health care system facing deep federal cuts, but for families watching grocery and restaurant tabs climb, it looks more like another hit to the household budget. The political question is no longer whether the need is real, but whether the dinner table should keep footing the bill.

The stakes are especially sharp for lower income Angelenos, who spend a larger share of their paychecks on food and often rely on inexpensive restaurants when time or housing conditions make cooking at home difficult. A new tax on top of already elevated rates would not only nudge up the cost of a burger or a burrito, it would quietly widen the gap between those who can absorb higher prices and those who cannot. That is the core tension running through Los Angeles’ latest tax debate.

From federal cuts to local cash register: how the half‑cent would work

The half‑cent proposal did not appear in a vacuum. County health officials are staring at a major loss of Medi‑Cal funding tied to H.R.1 and the Trump administration’s “One Budget” approach, which shifts more of the safety‑net burden onto states and counties. A newly formed health care coalition wants to plug that hole by asking Angeleno voters to approve a countywide sales tax increase in June, explicitly pitched as a way to offset Medi Cal losses at facilities such as Martin Luther King Jr. Community Hospital. Supporters argue that without new revenue, clinics and emergency rooms that serve the poorest residents will be forced to cut services or close.

County leaders have been briefed on the idea in a series of presentations that frame the tax as a targeted response to federal retrenchment. A PCEO report describes how the Los Angeles County Board of Supervisors is considering the measure as a direct answer to The Trump administration’s One Budget strategy, which has already squeezed the County Department of Health Services. Separate coverage of the same push notes that groups across California are exploring similar local taxes to offset health care cuts, with Lynn La of CALMATTERS detailing how advocates have zeroed in on county sales taxes as the most politically viable tool despite their regressive impact, particularly around the Martin Luther King Jr. Community campus in South Los Angeles, in a piece republished by Pasadena Now…

Story continues

TRENDING NOW

LATEST LOCAL NEWS