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Old 11-03-2009, 12:36 PM   #1 (permalink)
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California to withhold a bigger chunk of paychecks
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.

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.

"The state's suddenly slapping people upside the head," said Mack Reed, 50, of Silver Lake. "It's appalling how brash that is."

Brittney McKaig, 23, of Santa Ana said she expects the additional withholding to affect her holiday spending.

"Coming into the holidays, we're getting squeezed anyway," she said. "We're not getting Christmas bonuses and other perks we used to get. So it all falls back on spending. The $40 gift will become a $20 gift."

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.
Is this even legal?

As much as I would oppose a tax increase, at least that would be legitimate (and permanent).
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Old 11-03-2009, 12:45 PM   #2 (permalink)
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Wait, you wil get it back in April? As a "tax" refund? Didnt they issue IOUs this year? Or "warrants"? AS I recall, they supposed to redmmable starting October 2nd, I cant find anything saying if that held true. So how the heck does the state expect to pay back this extra withholding? Are the money aliens dropping off a sucer of cash? The greenback crop going to get harvested?
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Old 11-03-2009, 12:48 PM   #3 (permalink)
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would make more sense to drop welfare payments by 25 bucks a month.

when do those on public assistance feel the pinch? never? its always going to be the working people?
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Old 11-03-2009, 01:02 PM   #4 (permalink)
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We here at the Gude Foundation have long advocated the abolition of tax withholding on constitutional grounds of unreasonable search and seizure.

For one thing, the practical objection, it is not only an illegal property taking but, it is also an illegal taking from the employer to force him to work as an agent for the state.

As an ideological objection, withholding leads to malaise and disinterest in the electorate which leads to poor government which seems to be leading to worse government.
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Old 11-03-2009, 01:05 PM   #5 (permalink)
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would make more sense to drop welfare payments by 25 bucks a month.

when do those on public assistance feel the pinch? never? its always going to be the working people?
Why ask questions you already know the answer to?
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Old 11-03-2009, 01:13 PM   #6 (permalink)
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would make more sense to drop welfare payments by 25 bucks a month.

when do those on public assistance feel the pinch? never? its always going to be the working people?
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Old 11-03-2009, 01:23 PM   #7 (permalink)
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So what do I tell the bank when I send them 10% less money on my mortgage payments, because the state took the money I used to pay them.

Some people simply cannot stand a 10% pay cut. Many are living on the edge now. I would asume this cut applies to pensioners and people on fixed incomes also.

This would appear to me to be theft, pure and simple.
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Old 11-03-2009, 04:23 PM   #8 (permalink)
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Well, if they did it here in MD, it would be time to modify my state witholding form with HR.
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Old 11-03-2009, 04:28 PM   #9 (permalink)
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Well, if they did it here in MD, it would be time to modify my state witholding form with HR.
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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.
No "if" in Maryland, just a matter of when. And when April rolls around there won't be any money to give it back to us in a refund. They'll come up with some excuse and just raise taxes and keep the money.
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Old 11-03-2009, 05:24 PM   #10 (permalink)
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would make more sense to drop welfare payments by 25 bucks a month.

when do those on public assistance feel the pinch? never? its always going to be the working people?
You hate the poor.

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