Saturday, October 31, 2009

Interest Free Loans

Not for us but for the California state government. Starting tomorrow, all state income tax withholding will increase by 10%. The overall state tax rate hasn't changed (after the increase a few months ago) since voters shot down the tax increase propositions. Think of it as an interest free loan that we're forced to make to the state government. There's also a good chance that come April, there won't be any cash for state tax refunds (including "loan" repayments) so we'll end up with more IOU's.

What a bunch of incompetent and crooked politicians. When there's no money, cut spending! I hope all you who voted for these tax and spend, wealth redistribution, Democrat a$$holes are happy now.

Los Angeles Times

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.

1 comment:

hogsman said...

tsk, tsk -- how many special-interest groups do you think would support tax cuts? i wonder how many civics textbooks explain what pacs are and how much they really influence elections...