California to withhold a bigger chunk of paychecks

Los Angeles Times ^ | 10/31/2009 | Shane Goldmacher

[EagleUSA]

Reporting from Los Angeles and Sacramento - Starting Sunday, cash-strapped California will dig deeper into the pocketbooks of wage earners -- holding back 10% more than it already does in state income taxes just as the biggest shopping season of the year kicks into gear.

Technically, it's not a tax increase, even though it may feel like one when your next paycheck arrives. As part of a bundle of budget patches adopted in the summer, the state is taking more money now in withholding, even though workers' annual tax bills won't change.

Think of it as a forced, interest-free loan: You'll be repaid any extra withholding in April. Those who would receive a refund anyway will receive a larger one, and those who owe taxes will owe less.

But with rising gas costs, depressed home prices and double-digit unemployment, the state's added reach into residents' regular paycheck isn't sitting well with many.

"The state's suddenly slapping people upside the head," said Mack Reed, 50, of Silver Lake. "It's appalling how brash that is."

Brittney McKaig, 23, of Santa Ana said she expects the additional withholding to affect her holiday spending.

"Coming into the holidays, we're getting squeezed anyway," she said. "We're not getting Christmas bonuses and other perks we used to get. So it all falls back on spending. The $40 gift will become a $20 gift."

The extra withholding may seem like a small amount siphoned from each paycheck, but it adds up to a $1.7-billion fix for California's deficit-riddled books.

(snip)

California will probably continue to collect the tax at a higher rate for many years -- or find an additional $1.7 billion to slice from a future budget, an unlikely occurrence. All workers who have state taxes withheld will see their paychecks shrink.

[EagleUSA]

The liberal thieves of the state continue their ravaging of the public to fund their runaway liberalism and massive debt. And California continues to die as business and individuals continue to leave, voting with their feet. Bet your life you will see the 10% ever come back to you???

[rasl04]

Whose left in CA to tax??

[RC2]

Exactly what I was thinking. Once the government gets their hands on that money, the people will never see it again.

[rabscuttle385]

Think of it as a forced, interest-free loan: You'll be repaid any extra withholding in April. Those who would receive a refund anyway will receive a larger one, and those who owe taxes will owe less.

Adjust your withholding to compensate.

[Frantzie]

I thought illegal aliens did not cost taxpayers? Just like Michigan. CA killed by liberalism, Democrats, unions and open borders.

[Huskrrrr]

“California government....a poor excuse to pick a man’s pocket. Bah, Humbug!”

[Starboard]

Technically, it's not a tax increase

It never is.

[Sacajaweau]

Every tax bite kills a commodity someplace. Wanna make money?? Shut down ALL gambling enterprises.

[ez]

Keep voting Democrat you morons...you can register in the waiting room at Social Services.

[kidd]

The state of California takes extra REAL money out of everyone’s paycheck,
then,
refunds the money in state-issued IOU’s
then,
buys the IOUs back through third parties for pennies on the dollar from those who need real cash right away.

Nice way to work around the will of the voters.

[OldNavyVet]

“Guard your wallets, Boys, the legislature’s back in session.” — Mark Twain

[Pox]

And I'm sure Californians will be excited to receive even larger IOU’s come tax refund time.

[EagleUSA]

Nice way to work around the will of the voters.
:::::::
Exactly — just the libs of Taxifornia following the lead of the Obama regime.

[ProtectOurFreedom]

...it adds up to a $1.7-billion fix for California's deficit-riddled books.

What an economic moron. It's an interest-free four or five month loan to the state. Not in the wildest stretch of the imagination could you ever consider more borrowing as a "fix." The only true fix is to stop out of control government spending, not steal more money from your citizens.

[ClearCase_guy]

"Everything in the State, nothing outside the State, nothing against the State" -- Mussolini

The government owns your entire paycheck. Sometimes they let you keep some of it. But they don't have to do that.

[seastay]

this is an outrage, they claim to call the money just “withheld” but in fact, when the money is due back to the tax payer, whom has all ready been withheld more than their share, they are going to return a worthless IOU, which the banks wont cash! The media is to blame for this thievery as well, not calling out the legislatures out on this trickery.

[CurlyDave]

DW works for the State University system.

So far this year, she has taken a 10% pay cut, and now the state is going to increase withholding. This is a great big double whammy.

Retirement looms next year, and we will be taking our pensions, IRAs, and Social Security to Oregon. Out of reach of the CA tax man.

[jamndad5]

Present!

[Lancey Howard]

LOL

I can’t wait to see what they do next year. And the year after that.

[SnarlinCubBear]

Who is left? Businesses, that’s who. Our business, was to have a ZERO tax bill for last year, due to NOL’s forward. Instead, because of new legislation that was retroactive, we had to cough up $75,000. OMG, what a shocker. Thank you CA legislators and Arnold.