HolyCoast: California Borrows From the Taxpayers
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Sunday, November 01, 2009

California Borrows From the Taxpayers

And they're not paying any interest on it either:
California to withhold a bigger chunk of paychecks

The amount goes up 10% on Sunday as Sacramento borrows from taxpayers. Technically, it’s not an income tax increase: You’ll get the money back eventually.

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.

If you usually end up paying additional state tax when you file, you'll pay a little less. If you get a refund, you'll get a little more.

However, you won't have that money to use between now and then since the State is forcing you to loan it to them interest free.

Sacramento could use a good flushing.

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