Freedom Action Now

California income tax increase

with 2 comments

As everybody knows, California is running out of money. Someday, they might stop spending, but in the meantime, they have an option not available to the rest of us: they’ll simply take more money out of our paychecks.

Since they can’t actually raise taxes without a lot of bother,

Sacramento lawmakers have authorized a 10% increase in the amount of taxes withheld from worker paychecks starting November 1 and through 2010.

But the lawmakers say this isn’t a tax increase. OK, how about calling it a compulsory interest-free loan from taxpayers to the state?

If you end up owing less than they took out, they’ll graciously give it back to you in 2011, when you file your return.

Unless, of course, they’ve run out of money again:

What happens come April if the state doesn’t have enough money to pay the tax refunds it owes its citizens? Will taxpayers get IOUs the way state contractors did last year when Sacramento ran out of money?

The WSJ article concludes with:

They claim to want to steal only from the rich, but their latest withholding ruse is showing that they’ll steal from anyone with a paycheck.

There is one thing we have to fight back with: increase your allowed exemptions. Here is the California withholding form DE 4. All employers have a means to change your state and federal withholding allowances.

Tax law is complicated, and the consequences are drastic and unpleasant, so be very careful if you decide to go this route. As a minimum, you should have last year’s return, and a complete record of this year’s withholdings before you change anything.

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Written by freedomactionnow

November 4, 2009 at 11:40 am

Posted in Uncategorized

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2 Responses

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  1. How can there be any malfeasance if withholding is innacurately calculated?

    Isn’t it “fixed” when state income taxes become due? (April 15th, I would suppose.)

    When does a person’s tax liability become due?
    .

    OregonGuy

    November 4, 2009 at 12:55 pm

    • “When does a person’s tax liability become due?”

      For the Feds, on Jan 1 of the following year, but they graciously give you 105 or so days to come up with the loot. (Actually, it’s to give you enough time to figure out and fill out all those darn forms.)

      Not too long ago (Woodrow Wilson’s time) they figured that not too many people would have a few thousand $$ laying around come April (used to be March), so to make it more convenient for us, they started taking it out of our paychecks.

      As far as “accurately calculating” goes, I seriously doubt that anyone could ever get to with $100 of the final amount. There are just too many variables. The problem is that if you give them too much, they’ll give it back – without interest (except in California), but if you give them too little, they get all cranky and make you pay “estimates”.

      ZZMike

      November 5, 2009 at 11:46 am


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