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.
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.
“The state’s suddenly slapping people upside the head,” said Mack Reed, 50, of Silver Lake. “It’s appalling how brash that is.” The extra withholding may seem like a small amount siphoned from each paycheck, but it adds up to a $1.7-billion fix for California’s deficit-riddled books. From a single taxpayer earning $51,000 a year with no dependents, the state will be grabbing an extra $17.59 each month, according to state tax officials. A married person earning $90,000 with two dependents would receive $24.87 less in monthly pay.
California will probably continue to collect the tax at a higher rate for many years — or find an additional $1.7 billion to slice from a future budget, an unlikely occurrence. All workers who have state taxes withheld will see their paychecks shrink. “Many families are sitting at their kitchen table wondering how they’re going to make ends meet,” said state Sen. Tony Strickland (R-Thousand Oaks). “At the same time, the state of California is taking a no-interest loan.”
There would seem to be something illegal about this. If it isn’t, it should be… What a crock!
Arnold is destroying California like Barack is destroying the rest of the nation.
How ever could financial ruin happen on such a massive scale while under the expert leadership of an actor and a community organizer?
@Dr Dodd
Dig Reagan up and ask him.
What a lame ass state. Looks good on you.
LOL! We deserve it we keep sending the Nazi party back to Sacramento every year.
When was the last time a Tax increase was temporary? Oh that’s right the Nazi’s are saying they’ll put it back.
These are the same workers that voted to preserve big paychecks for state employees in 2005. Arnold tried to keep the budget in line. With the budget out of control, you have to do something.
I am tickled to death I don’t live in that fucking state anymore.
The people out there put up with it so I don’t give a shit.
#44, the problem is the same people who brought us the disaster in California, are the same ones in charge of the country now. To make matters worse, they don’t have to borrow money, they just keep printing it.
“Those who would receive a refund anyway will receive a larger…” I.O.U.
Californians deserve this for stupidly letting the conservatives overthrow Gray Davis and replacing him with an actor.
Still, it is sad to see such a great state be sent down the crapper by a small cabal of self-serving conservative cranks.
We have a the same problem here in Oregon, the liberals created a pretty-great place and then a very small group of well-funded conservatives try their damndest to wreck the state by getting the most ill-concieved, bone-headed budget wrecking ballots measures passed.
>> Dr Dodd said, on November 2nd, 2009 at 3:55 pm
>> Arnold is destroying California like Barack is destroying the rest of the nation.
>> How ever could financial ruin happen on such a massive scale while under the expert leadership of an actor and a community organizer?
Wowie wow wow. Talk about history revisionism … real time!
You honestly remember the economy being fantastic last January?
Obama INHERITED a financial disaster from the REPUBLICAN-led government!
Blaming Obama for this economy is like blaming your mechanic for fixing the car you wrecked while driving drunk.
Ultimately it was “Reaganomics” that caused this financial disaster, started by an actor but aggressively implemented by conservatives of all stripes.
>> # 30 chuck said, on November 2nd, 2009 at 1:18 pm
>> I guess Democrats aren’t concerned because they don’t pay taxes.
What a dumb thing to say.
Red states feed at the federal trough, blue states supply the feed.
http://tinyurl.com/45ws7
But, of course, facts never get between conservatives and their rhetoric.
All I know is I hate this. After a pay cut and now this how the fck am I suppose to feed the family or save up? I think it’s time to go on a rampage people…who’s with me!!! Viva le REvolution!!!
#48-Greg Allen-Ultimately it was “Reaganomics” that caused this financial disaster…
Blaming Reagan is a bit of a stretch even for you. That was 25 years ago. You complain about revising history, then do just that.
Bush on the other hand deserves a portion of the blame. As it stands, Obama is now wearing the crown so the financial well-being of the nation is his problem.
A problem I might add that he is intentionally making worse.
Wow, nice way to misuse percentages. Quick web search states current CA taxes are between 1 and 9.7 percent. The increase is 10 of current percentage, NOT an increase of 10% of the base pay.
How would the headline read if it stated “CA increases income tax 1%”
#19
How is it that the State with the highest per-capita tax rate and the highest overall tax revenue cannot balance its books? Frankly, the claim that “it’s an expensive State to run” is a load of crap. They have had more than enough money and have pissed it away along with the citizenry who vote for nonsensical bond measures like the bullet train. We already pay for that expensive central valley water in that the farmers pay higher water prices which they then pass along to consumers.
Btw, where are the liberals that think that Obama’s spending to get out a recession is good? Why don’t they endorse the CA government spending even more? It’s not like begin broke should ever stop them.
#47
You cannot be serious. Mr. Milk Toast? Mr. Bend over for Enron? Furthermore, if Arnold has proven anything it is that it has been the uber-liberal CA Congress that is to blame for CA woes for the past 40 years. It took a couple of propositions to force bozos like Willie Brown out and to get some semblance of gerrymandering order (only last year).
C’mon guys
The expression goes “Ask not what the country can do for you, but what can you do for the country?”
Take a hit for the state of California!
@48
Nice name calling and posturing. Looks good and totally doesn’t look bottom-of-the-barrel!
#21 Let me explain this since you failed social studies in grade school even if they socially promoted you.
The head of the executive branch in a Republic does not pass tax bills nor does he decide how to spend the money except in a limited way if he abides by the constitution. That is what the legislative branch does.
If he does do those things it’s called a dictatorship.
#56, doill,
Let me explain this since you failed social studies in grade school even if they socially promoted you.
Part I
And please allow someone who did pass civics to explain it to you.
The President / Governor / Mayor prepares and presents a budget. This is done using projected expenditures for the next fiscal time frame. Each department head is responsible for preparing their immediate budget goals. The Executive then fine tunes the budget to follow their platform, where necessary.
Once the Executive is satisfied with their results, the budget is presented to the legislative body. The various committees of the legislature then reviews the areas of the budget they are responsible for and then make any changes they feel are required. The various committees then return the budget back to the main legislature who votes to either accept or reject it.
Once the budget has been accepted by the legislature, the Executive then gets to have the final decision. If he can accept the budget he signs it. If he doesn’t accept the budget, he vetoes it and it is returned to the legislative branch.
If the budget is passed, each department now has the money to spend as they may UNLESS it is explicitly stated that the money be spent on a specific point. Generally that means the budget will tell them to buy X number of cars, allowing the department head to decide on the exact model and trim. Sometimes the budget will states that specific land be purchased for a public project (school, road, etc) or other specific item. Usually, only very large ticket items are specified.
Most Constitutions are mute on the exact process for finalizing a budget. They all do require the vote of the legislature and approval of the Executive.
Part II
The problem in California is the budget requires a super majority (66%) to pass the legislature, even before being given to the Executive. This rule has hampered every budget since it was enacted. A small rump of legislatures may now hold the entire State hostage to get their way. This is neither democratic nor very efficient. Here, we have the Republicans stymieing every attempt to fix the mess.
By law, the State is required to fund many programs, including: prisons, schools, roads and other infrastructure, law enforcement, and medicaid. There is very little room to change or reduce spending in any of these areas.
Because of proposition laws, the jails are overfilled with three strikes prisoners and those with excessively long sentences. Yet, the Republicans refuse to allow the construction of new facilities. Programs that work, such as helping prisoners achieve education and job training to KEEP THEM OUT of jail are being eliminated . Medical services have been stretched to the point the Federal Courts have stepped in to force changes.
Great, so I am already having trouble keeping my bank balance positive, and when it goes negative, the banks I bailed out hiked up fees so I get completely raped (160.00 for going 15 dollars negative). Now I get to lose an extra 10% because my state can’t figure shit out. Thanks Sacramento.
When you spend more than you have coming in you have to raise taxes.
Either cut spending (What’s left to cut in california? nothing! They already tried to balance the budget on the old, disabled and jobless).
Raising taxes is the only other alternative. Did I mention I hate whiners?
I live in California and California will continue to be bankrupt why? Because they will not cut funding for illegal immigrants…. That is why…. So tax payers are paying for this crap… I am all for a Freaking Recall This time its warranted…
Is it an additional 10% then what they already take fr0m me?
Does anyone know how we can start a petition for this 10% cut in our paychecks?