Monday, November 2, 2009

California to withhold a bigger chunk of paychecks "Technically, it's not an income tax increase:"

Putting the fun in dysfuntional!
From the Los Angeles Times:
"You'll get the money back eventually."

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....MORE
Now, how do you spell tyrannicide?