As the cost of living continues to rise across the United States, many cities are looking for ways to address urgent issues without putting too much burden on their people. In Los Angeles, officials have now approved a sales tax increase to tackle one of the city’s biggest challenges — homelessness.
The tax hike, while adding to consumer expenses, is expected to bring long-term benefits by supporting affordable housing and homeless services.
The Growing Homelessness Crisis in Los Angeles
Los Angeles is home to more than 45,000 homeless individuals, and the true number could be even higher. Almost half of the entire U.S. homeless population lives in California, with LA County being one of the most affected regions.
The main cause behind this crisis is the lack of affordable housing. Rising rents, limited job opportunities, and high living costs have made it difficult for many people — including seniors and low-income families — to stay housed.
Experts say the city needs:
- More affordable housing
- Stricter rules to stop unfair evictions
- Better mental health and addiction support
- Financial help like rental subsidies
What Is Measure A and How Does It Affect Sales Tax?
In 2024, Los Angeles voters approved Measure A, a new sales tax initiative that replaces Measure H — which was passed in 2017. While Measure H was due to expire in 2027, Measure A will now continue and expand its goals.
Here’s what Measure A will do:
- Increase the sales tax from 9.5% to 9.75% in unincorporated LA County areas
- Apply an extra 0.25% sales tax in all cities within the county, no matter their current rate
- 60% of the new tax revenue will fund homeless support services
- 40% will go towards building affordable housing
Measure A aims to move people from street encampments into permanent housing, support those with mental health needs, and prevent new cases of homelessness.
Senior Citizens: The Silent Side of the Crisis
Many people don’t realise that senior citizens are one of the fastest-growing groups experiencing homelessness.
Some key facts:
- Over 138,000 homeless people in the U.S. are aged 55 and above
- This group makes up 20% of the total homeless population
- By 2030, this number is expected to triple
The sharp rise is a warning that retirement planning is now more important than ever.
How You Can Plan for Retirement and Avoid Financial Trouble
It’s not enough to rely only on Social Security benefits after retirement. To avoid financial difficulties in later life, you should:
- Start saving early
- Invest in low-risk funds for safer growth
- Use compound interest to grow your money over time
- Diversify your income sources (e.g., pension, investments, part-time work)
Proper financial planning can protect you from unexpected events and ensure a comfortable retirement.