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Random Quote: Better to beg forgiveness, than ask permission
THIS IS SO BIZARRE, AND IF CALIF GETS AWAY WITH IT OTHER STATES ARE SURE TO FOLLOW.
Wage earners in California just got hit with a 10% increase in state income tax withholdings. The key word here is "withholding".
The good news: there is NO INCREASE IN STATE INCOME TAX...it is just an income tax withholding increase -- money withheld from an employee's paycheck.
The bad news: California is bankrupt, plans to generate a $1.9-billion interest free loan by confiscating 10% MORE than actual taxes owed, then allowing the money that is the 10% increased withholding to be re-claimed when folks file their state income tax returns in April 2010.
I presume the state is going to spend the money they take out of everyone's paycheck -- California doesn't have the $1.9-billion now, so what is gonna happen to cause the state to have it in 5 1/2 months?
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IGNORE LIST CONTENTS: Hydro, nautiduck, Greaser, sdkid
That state is finished, and all as a result of policy and illegal immigration.
They made their bed, i have a hard time feeling sympathy as they lie in it.
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Last edited by THT Mod 4; 11-06-2009 at 09:20 PM.
Reason: Deleted political commentary
It is NOT about how California or any other state got themselves into the bankrupt mess they are into, it is about the idea that a state would take money away from people, before the people can get their hands on it, while knowing full well the state is NOT ENTITLED TO THAT MONEY AND NEVER WILL BE.
I don't think folks understand the significance of this. If Calif can get away with doing this -- and I don't see how they can -- other state WILL do the same thing!!!
Ask yourself this; how will you feel when the federal govt decides it needs more money and leverages a 10% increase in the federal income tax it withholds from YOUR paycheck, and tells you it is yours and will be refunded to you on April 15th?
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IGNORE LIST CONTENTS: Hydro, nautiduck, Greaser, sdkid
It is NOT about how California or any other state got themselves into the bankrupt mess they are into, it is about the idea that a state would take money away from people, before the people can get their hands on it, while knowing full well the state is NOT ENTITLED TO THAT MONEY AND NEVER WILL BE.
I don't think folks understand the significance of this. If Calif can get away with doing this -- and I don't see how they can -- other state WILL do the same thing!!!
Ask yourself this; how will you feel when the federal govt decides it needs more money and leverages a 10% increase in the federal income tax it withholds from YOUR paycheck, and tells you it is yours and will be refunded to you on April 15th?
The citizens of many other states aren't nearly as passive as those in Cali.
Try that here and there would be a lynching!!
Too bad the dollars they seize from us now are worth even less when/if we get a refund back. It's bad enough the taxes but the dollar slides in value every day. Gee whiz, now you can get a $250,000 mortgage loan @ 4%. That's how cheap money is.
__________________ The Flying Wasp - Carolina Skiff 238 Semi-V
Perhaps the initial withholding rate wasn't sufficient to cover taxes owed and the state is collecting the money as a means to prevent collecting checks at tax time for underpayment? I don't know, I'm just asking.
I for one, would much rather owe the state at the end of the year than them owe me. Like you said, it's a free loan to the state. I've got employees that absolutely love big refund checks. When I try to explain to them that they are screwing themselves by not claiming their dependents on their W-4, they look at me like a dog watches TV. They know something is going on but they don't understand it. Of course, they are the kind that never saves any money and they think the government is giving them a big bonus check.
And even worse, some get refund anticipation loans because they can't wait to get their hands on that money.
Perhaps the initial withholding rate wasn't sufficient to cover taxes owed and the state is collecting the money as a means to prevent collecting checks at tax time for underpayment?
No, that's not it. The state needed more money but did not want to raise taxes. It is literally as I stated, the intent is for Calif to generate a temporary $1.9-billion loan without having to pay interest. I don't see how it can fly -- remember something about the govt not being able to take a person's property without conpensating them for that property (Amend 4?).
I think withholding income tax from a paycheck is possible because the tax is owed when the money is earned/paid. What Calif is doing to intentionally over-withhold from everyone's paycheck.
Yes -- an employee can increase their anticipated deductions like with a fed W-4. That is what a lot of people are doing to avoid have that extra 10% withheld.
Calif is literally bankrupt -- it has more debt than assets, no foreseeable way to re-pay its debts. Problem: there is no bankruptcy code for a 'state' to declare bankruptcy. I think it was Ch 9 of the bankruptcy code that was written for a municipality (specifically New York City) to declare bankruptcy, but there is nothing for a state ... yet.
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IGNORE LIST CONTENTS: Hydro, nautiduck, Greaser, sdkid
Time to reset your anticipated exemptions (or is it deductions) to twenty.
The most interesting part is that Calif is saying the people can have the money back on April 15th. Problem, Calif was issuing IOU's for tax refunds last year. I guess they will issue more and bigger IOU's this year?!?
Calif -- what a beautiful state, and what a fuggin' mess it is in.
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IGNORE LIST CONTENTS: Hydro, nautiduck, Greaser, sdkid
California Paychecks Just Got Smaller - ABX417
1st Cav Div Air Assault Infantry RVN
