California's tax withholding increased 10%
 

Just thought you guys should know... your weekly paycheck might be a little less. Very nice of you all to loan your state government extra money. I hope they help you when you need it!

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The federal and California state tax honchos couldn't plan it this way if they tried, so forget about your conspiracy theories.

Months after Uncle Sam is well into a stimulus tax program that gives workers more of their paychecks, California has swooped in to take back that money with an accounting trick to help balance the state's budget.

On Sunday, California began withholding more from workers paychecks as part of the smoke-and-mirror math that helped close a $48 billion budget gap this year.

This is not a tax increase, Gov. Arnold Schwarzenegger will say, but rather a way to raise nearly $2 billion between now and the end of the state's fiscal year in June.

The new tax tables increase the state withholding rate by 10 percent and increase withholding on supplemental wages (i.e., bonuses and leave payouts on a final check or paid in advance of retirement, etc.) to 6.6 percent from 6 percent.

You can check what your reduction will be by looking on a recent pay stub. Find where it says "CA State Income'' and multiply that by 10 percent.

For example, if you currently have $20 withheld for state income taxes per check, you will now have $22. A single wage earner making $51,000 a year with no dependents will get about $4 less a week. A couple earning $145,000 a year with no dependents will notice a $16.90 decrease in weekly withholdings.

The attitude is different over on the other side of the tax-collecting fence, where the federal government is six months into living with less tax withholding revenue.

As part of President Barack Obama's stimulus plan to put more cash into taxpayers' hands in the most seamless way, the feds lowered income tax withholding rates in April.

The Making Work Pay credit is equal to 6.2 percent of earned income, whether it be from job wages or self-employment. It applies to 2009 and 2010.

For the individual taxpayer, the credit is worth up to $400 a year and for married couples filing joint returns, it's worth up to $800. The credit is phased out for individuals with adjusted gross incomes between $75,000 and $95,000 and for married couples with adjusted gross incomes between $150,000 and $190,000.

Most people who receive the credit have seen their paychecks grow by $15 to $20 per pay period since April.

But in the Golden State, you can kiss that goodbye. Arnold and the Legislature have effectively scooped up $2 billion Uncle Sam was trying to give us.

That's a potential $2 billion taken out of California retailers at the beginning of the biggest shopping season of the year, further stomping on any green shoots of recovery trying to survive.

You could argue that the state's tax grab is not going to make or break anybody, and that it is better than a tax increase. The higher withholding tables do not increase anyone's tax liability.

But the Governator and Legislature knew when they agreed to this accounting trick that it would weaken the federal government's stimulus plan. No matter.

The only thing that mattered to those in Sacramento was to balance a budget without raising taxes, even if it meant taking more from the paycheck of workers and dampening recovery. How's that for logic?

http://www.mercurynews.com/columns/ci_13703740

Thank you Obama.

no worries. anyone with half a brain knows how to not pay taxes and get away with it.

the gov can only sheep you if you let them. and a wink wink wink to them.

LOLLLLLL.

wtf do you even read these threads?

I feel on both sides, the government is handicapped by unions, lobby groups, and special interest who will threaten recalls etc. if it effects them, then there are the people getting fucked, yet they keep voting for services but never ways to pay for them.

Wonder how that works. I have received nothing that has said to start withholding more.

So the state of Ca. gets fed income tax money from the people that pay 'fed' tax? Obama cut fed tax, not state level. So how is Obama's tax cut, hurting Cali?

This is nothing more than a tax hike, it has nothing to do with any stimulus by any president.

lol what an ass

california was in the shitter long before Obama became pres

until they call you...

i just got a call from the state of California from taxes not paid in 2007. Some smuck that I did some consulting work for fucked up and put MY social security number to someone eles's wages... i know this because it has someone else's name on the 1099!

they lady was pretty bitchy on the phone saying I have 15 days to pay it or they will attach fines and can cease my bank account... never dull for me

If you want public services, you pay for them.

People need to stop the cry baby shit, and either vote to cut programs. Or you learn you have to pay for shit. Parks, roads, good schools, government hand outs, bail outs, wars, social programs and so forth do not come from the magic money tree on the capitol's front lawn.

:disgust

all good..

No surprise

That's not good