William (aka Bill the Godfather)

William (aka Bill the Godfather)

Tuesday, November 03, 2009

California to withhold a bigger chunk of paychecks

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.
Read the rest here

Hat tip T-19

2 comments:

RichnHim said...

Uh huh..And the Gubernator is good on his word eh? We'll see. No tax eh? If it smells like a pig, looks like a pig...etc..etc..

Reactionary said...

I don't see how this could even pass constitutional muster.

Of course, I said the same thing when local governments started condemning property in order to give it to private developers.