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California takes interest-free loan from working people?

What do you think of this?

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.

 
grlygrlz2

Asked by grlygrlz2 at 4:27 PM on Oct. 31, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
This question is closed.
Answers (11)
  • It's a possibility our current administration will follow suit. Federal tax revenues are down, and they could do this to increase revenue to pay for their excessive spending, while still claiming not to raise taxes.

    ***

    Just like the old saying....How California goes, so goes the rest of the country!
    LoriKeet

    Answer by LoriKeet at 5:09 PM on Oct. 31, 2009

  • grlygrlz2

    Answer by grlygrlz2 at 4:27 PM on Oct. 31, 2009

  • When does the mass exodus begin?! Good grief.
    LoriKeet

    Answer by LoriKeet at 4:44 PM on Oct. 31, 2009

  • It's a possibility our current administration will follow suit. Federal tax revenues are down, and they could do this to increase revenue to pay for their excessive spending, while still claiming not to raise taxes.

    Anonymous

    Answer by Anonymous at 4:49 PM on Oct. 31, 2009

  • Doesn't California already have pretty high state tax? I guess they want to collect all they can, BEFORE the mass exodus. lol
    mancosmomma

    Answer by mancosmomma at 4:50 PM on Oct. 31, 2009

  • If they took an extra ten percent out of us we'd be in trouble.
    lovinangels

    Answer by lovinangels at 6:32 PM on Oct. 31, 2009

  • So glad we moved that would have been an additional 300-400 a month. We made Ok money for California but with 2400 a month rent for a shitty apartment, food, gas, utilities and other things so high. We would not have made it there long. Our friends said this will sink them they just bought a new house and their property taxes were raised by 3k after closing and now this. They raised state taxes in March already. The state wants to make sure the people there suffer I guess.
    Anonymous

    Answer by Anonymous at 9:11 PM on Oct. 31, 2009

  • In Cali you pay state taxes and you have to pay state disability along with it. We paid 200 bucks a pay period in the disability we never used. That state sucks.
    Anonymous

    Answer by Anonymous at 9:12 PM on Oct. 31, 2009

  • sounds like it is time to MOVE. this is so wrong. u think they will get paid back or will get more I.O.U.'s?
    Lynette

    Answer by Lynette at 11:49 PM on Oct. 31, 2009

  • Californians have known about this for months now. Not news to anyone here who's been paying attention.

    IOUs have already been paid out.

    This year is nothing, though. NEXT year is when things will get really rocky. Arnold and the Legislature merely kicked the can down the road again.

    And one more thing...the federal government is allowed to deficit spend and to print money. California cannot. Thus the accounting trickery to balance the budget.
    gdiamante

    Answer by gdiamante at 1:25 AM on Nov. 1, 2009

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