Posted on 11/01/2009 8:08:17 AM PST by 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.
(Excerpt) Read more at latimes.com ...
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.
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And all from a state that is stealing taxpayer dollars to fund ILLEGAL aliens to the tune of about TEN BILLION DOLLARS per year. But they have to take about two billion from us, the taxpaying LEGAL CITIZEN WORKERS of California.
Well the state has the lowest credit rating of any state don’t they? They have nobody left to “borrow” money from.
What about a 95% tax rate on Hollywerd??
CA voters are gluttons for punishment. I say let them have it.
Yeah, hope all you Californians understand when it says you will receive a bigger ‘refund’, you will receive a bigger IOU. Cash in, IOU out.
Speaking of which, where is the windfall going to be in the spring to refund all this money?
Us. But not for much longer. Soon there will be on one left but unions, illegals & bangers.
I love the part about being “repaid”. Guess that means more IOUs that no bank will cash.
Us. But not for much longer. Soon there will be on one left but unions, illegals & bangers.
I love the part about being “repaid”. Guess that means more IOUs that no bank will cash.
This is merely a two or three year band-aid to reach the next level of state bankruptcy. It simply delays the event, and triggers everyone to have additional pain while they wait for the curtain call.
The next trigger? Watch for a significant decline in state-funded construction projects. Watch for the state-run university system to have several big name “executives” told to retire, with no real replacement. Watch for tourist-related taxes to edge up by twenty-five percent.
My twenty-year prediction...the federal government runs the state-government of California. Everyone from the remaining 49 states will be contributing to the requirements of the state.
Speaking of which, where is the windfall going to be in the spring to refund all this money?
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I think everyone realizing what these charlatans are doing, are asking the very same question....they will spend this money and HOW are they going to get it back???
They won’t.
Have a childhood friend who is an avowed Socialist in Los Angeles. She is upset at the increase in taxes and guess what, it’s Arnold the Republican’s fault.
I can’t get it through to her head. I love her dearly, but she lives in loo loo land or something.
Yeah, all those dumb Hollywood stars want the GREEDY Wall St bankers to get 90% tax, but I’d bet they’d be a little upset at lowering their own standard of living for the ‘good of the nation’.
There have been other articles on FR discussing how Hollywood is suffering from pirating etc. I didn’t see
many teary comments of support posted.
The good news?
You will get a bigger “IOU” at refund time
Which state is the best in which to live with respect to:
1. Small gov’t (Red)
2. Strong economy
3. Good environment (parks, hiking, water sports)
4. Good education system
5. Conservative majority (not too many libs, just enough to make good coffee, health food, and interior decorating)
I’m a small business owner and this is the first I’ve heard of this.
Until the State send me a new witholding chart I’m using the old one.
Which brings up a point.
What is it going to cost the State to mail out new witholding charts to employers?
"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."
This is from a $92 billion budget so this would be a 1.85% cut and they can't do it?!?! You have $10 and they can't cut 18 cents out of it! AND this is on top of a statewide (TEMPORARY) 1% increase in the sales tax started in April?
If I were Obama, I would pass on photo-ops with the Gubernator. Yes, I know that Ahrnold is at the mercy of an overwhelming Dimocrat State Legislature but he has got the bag and he failed. When he got in after Grey Davis, he should have made each and every one of their spending bills a nightmare. However, I guess that might have made for a 'cold shower' with his Kennedy in-laws and no reelection the last time. No wonder Mayor Newsome of NancyP's home town of Babylon-by-the-Bay has bowed out, California needs a total cleaning and so long as they keep electing these spend-a-holics, tain't gonna happen!
Obviously, you are not cut in on CA politics.
Unless, of course, California does not have the money for the 2009 refunds and has to issue those IOUs like it tried to do last spring.
California to Issue IOUs for Income Tax Refunds, Might Nix CAL Grants for Students
Outright theft, pure and simple.
Not that the Austrian dullard would ever catch on, but this is what the Democrats do, they get you to go along with their spending, and then and there, your brand image, your word is mud. Worthless. Done. Fork in toast.
You are then a typical deballed, castrated, loser RINO.
Just
The
Way
They
Like
You.
Like a girl that whores, you’ll have ‘friends’ but no respect.
Now since this ruining tactic is as old as mud, you have to figure that your typical RINO likes to be plowed. Matter of fact, yearns for it. Pines for it.
Pelosi, Waxman, Boxer and the rest of that cabal will force the other 49 states to pay for CA out of control government. Isn’t that what most of the Obama stimulus had been about.
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