California takes interest-free loan from working people

posted at 10:30 am on October 31, 2009 by Ed Morrissey

As if working people in California didn’t have a tough enough time, they are about to see their paychecks get a little lighter, courtesy of their political class in Sacramento.  In order to help close a budget shortfall, the state will increase withholding from paychecks by 10%, in essence forcing every working person in California to make an interest-free loan to the state:

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.

Think of it as theft.  Most Californians won’t be as sanguine about getting their tax refunds next April, not after watching the IOUs go out this summer from Sacramento.  What happens when April rolls around and the state still doesn’t have the cash?  Do they confiscate the refunds and promise to pay them back in 2011?

This all starts with state leadership unwilling to make the tough decisions on cutbacks in the massive state bureaucracy.  Instead of cutting their own budgets, they’re cutting the personal budgets of all Californians by seizing their assets without compensation.  Golden State residents should ask themselves why they put up with a group of politicians who claim to be unable to reduce state spending but have no problem dipping into the pockets of Californians who actually work for a living.

Next November, Californians should conduct a full-unemployment program in their state legislature, and “withhold” 100% of the salaries of the current political class.


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Bwaaaa! Reap what you sow, Californians, these are the dirtbags you elected.

Why not just make the withholding 100%, it’s not like people need money for food or clothing.

Bishop on October 31, 2009 at 10:32 AM

Oh , so people are going to buy less and default on their mortgages. See how that works out for ya.

Hotel stupidity , you can check in but you can never leave.

the_nile on October 31, 2009 at 10:33 AM

A tax by any other name is still a tax.

William Amos on October 31, 2009 at 10:34 AM

This is frightening.

p0s3r on October 31, 2009 at 10:34 AM

Why not just make the withholding 100%, it’s not like people need money for food or clothing.

Bishop on October 31, 2009 at 10:32 AM

Profiteers steeling it from the government.

the_nile on October 31, 2009 at 10:34 AM

Why not just make the withholding 100%, it’s not like people need money for food or clothing.

Bishop on October 31, 2009 at 10:32 AM

Is that all you conservatives think about? Yourself? Me me me… I want food today… I want shelter from the cold. The state has needs too! You act like it’s your money.

mankai on October 31, 2009 at 10:36 AM

You’ll be repaid any extra withholding in April.

In “vouchers”? Rubber checks? Real money?

Wethal on October 31, 2009 at 10:36 AM

Don’t give the other states any ideas.

mankai on October 31, 2009 at 10:37 AM

Next November, Californians should conduct a full-unemployment program in their state legislature, and “withhold” 100% of the salaries of the current political class.

Sadly they won’t, though. So glad I shook the CA dirt off my heels four years ago…

OmahaConservative on October 31, 2009 at 10:39 AM

Oh no! Here comes more liberal calinuts moving to Arizona!
GAAAAAACCCKKK!!

jbinnout on October 31, 2009 at 10:41 AM

Bwaaaa! Reap what you sow, Californians, these are the dirtbags you elected.

Bishop on October 31, 2009 at 10:32 AM

Yeah and it looks like Jerry Brown is going to be the next Democratic nominee for Governor of California (again!). You all remember Jerry Brown of Jane Fonda, Linda Ronstadt, hippie, environmentalist wacko, pro-Hanoi, socialist fame. You know, the guy who started California on its road to ruin in his term as governor after Reagan left to become POTUS. What is the matter with Califonians?????

Christian Conservative on October 31, 2009 at 10:41 AM

Think of it as theft. Most Californians won’t be as sanguine about getting their tax refunds next April, not after watching the IOUs go out this summer from Sacramento. What happens when April rolls around and the state still doesn’t have the cash?

Precisely the reason we should have stopped that idiot Wilson in 1912. The federal government is headed the same way.

You heard it here first: There is nothing more addictive than other people’s money.

This is just a preview of things to come.

dogsoldier on October 31, 2009 at 10:41 AM

I am SO happy we live in TX that has no state tax. I would not live in CA for anything the mess that state is in.
L

letget on October 31, 2009 at 10:42 AM

Is this a Halloween joke? That is so scary.

cibolo on October 31, 2009 at 10:43 AM

So what’s to prevent you from filing a new DE 4 form with your employer and changing your withholding back to what it was?

Socratease on October 31, 2009 at 10:45 AM

Paging Hotair Liberals. Paging hotair librals.

Why do you want to do this to the whole country?

MadDogF on October 31, 2009 at 10:45 AM

Time to close the state borders. Anyone from california must take an IQ test and sign a pledge never to elect socialist leadership in their perspective new state before being admitted.

katy on October 31, 2009 at 10:45 AM

2010 can’t come soon enough.

SoulGlo on October 31, 2009 at 10:45 AM

I feel no pity for liberal Californians – but i do feel bad for the ordinary middle class people who are not political/sonservative and try to make a decent living – by now, these people should have discovered that their continued existence in the state is eventually going to work against their self interests in the short and log term.

At this point,I dont know of a more parasitical state in this Union than California. Of course NY, NJ are right there too.

nagee76 on October 31, 2009 at 10:46 AM

Great state, crappy government. Sadly it’s probably beyond saving. What happens when a state collapses financially, morally and socially?

Mason on October 31, 2009 at 10:46 AM

You’ll be repaid any extra withholding in April.
In “vouchers”? Rubber checks? Real money?

Wethal on October 31, 2009 at 10:36 AM

That is probably what most people are worried about – their refund will not be in money but IOUs.

katiejane on October 31, 2009 at 10:48 AM

What are the chances CA can become a conservative state? Just throwing that out there….if the Conservs controlled CA, I don’t see how the libs ever win another general election…..

tatersalad on October 31, 2009 at 10:50 AM

If it happened there, it can happen anywhere. Big Brother is here…Party like it’s 1984!!!

Nalea on October 31, 2009 at 10:50 AM

And this is legal? How in the hell can anyone trust the government to not issue IOUs in the spring if they’re broke(which they already are)?

I changed my mind about Californians moving to Texas. We need to have a moratorium on any Cali transplants until at least 2011. Let’s see you guys atone for yourselves at the ballot box next fall. Then we’ll reconsider.

Doughboy on October 31, 2009 at 10:51 AM

Great state, crappy government. Sadly it’s probably beyond saving. What happens when a state collapses financially, morally and socially? Mason on October 31, 2009 at 10:46 AM

The people move out and spread the collapse to other states. Will they actually learn? No, they blame it on NOT ENOUGH property and money confiscated in the name of the State.

Mojave Mark on October 31, 2009 at 10:53 AM

The federal government is headed the same way.

You heard it here first: There is nothing more addictive than other people’s money.

This is just a preview of things to come.

Oh, I don’t know, being able to print more money is even worse in my opinion. That devalues all the money you earned and saved without even passing a bill, and it’s permanent. An interest-free loan doesn’t sound so bad compared to that.

Socratease on October 31, 2009 at 10:54 AM

Two can play this game. I recommend all employed Karlifornians go to the website below, increase your withholding exemptions and submit, print it out and submit it to your employer:

http://www.edd.ca.gov/pdf_pub_ctr/de4.pdf

My employer does this on-line, and if yours does too take advantage of it. We sold a house in August 2008 and CA took a $22K withholding “loan” from the proceeds. We had to wait for our delayed tax refund in May 2009 (nine months) before we got the money back.

Bump up your withholdings for 2010 enough to offset this new hidden tax!

PD Quig on October 31, 2009 at 10:55 AM

Amazing. I don’t think people realize how serious this is. This is oppression, pure and simple. Sure people will endure it for a little while, they’ll say to themselves that this is a one time occurrence, but if it continues happening (and the legislature shows no signs of stopping) there will be an armed revolt. After all, it’s not like this form of tax increase is constitutional under normal rational understanding of what constitutes a tax increase and what the state constitution says about tax increases.

You simply can’t treat people like this without generating enormous hostility. Will they increase withholding by another 10% to cover further future shortfalls? When people are facing an inability to budget because they don’t know how much of their paycheck the government is going to seize, they will soon be facing the inability to do things like pay for food and shelter. When faced with that, and combine with the monstrous injustice of the act- people will violently resist.

Sackett on October 31, 2009 at 10:57 AM

Ok I feel bad for lumping in sane Californians with those who elected Pelosi, Boxer and Newsome; you people don’t deserve the azzhats who are destroying your state.

I guess the question is how many people will now desert the state?

Bishop on October 31, 2009 at 11:01 AM

Two can play this game. I recommend all employed Karlifornians go to the website below, increase your withholding exemptions and submit, print it out and submit it to your employer

And file your tax return in January, so you get your money back quicker.

Socratease on October 31, 2009 at 11:01 AM

Actually, is this legal?

Wasn’t one of the founding principles of the country that the nobility, err, government class, can’t just take things from you when they feel like it?

18-1 on October 31, 2009 at 11:03 AM

*blood boiling*

Our USELESS state government can kiss my ass! I make estimated quarterly payments, which are promptly going to be reduced by 10%.

evergreen on October 31, 2009 at 11:05 AM

Hook em Horns . . . and God Bless Texas.

rplat on October 31, 2009 at 11:05 AM

The people move out and spread the collapse to other states. Will they actually learn? No, they blame it on NOT ENOUGH property and money confiscated in the name of the State.

Mojave Mark on October 31, 2009 at 10:53 AM

Indeed, yhe patient zero mentality of, especially, the leftwing upper middle class is amazing. We’ve seen many iterations of this, and it shows no signs of stopping.

Vote in local leftists, watch your city fall apart. Move to the burbs. Vote in state wide leftists. Watch your state fall apart. Move to another state. Vote in the same sort of leftwing morons. Wash, rinse, repeat.

I know the left has a real problem with history – but when you fled the results of leftist governance YOURSELF a few years before, what the hell?

18-1 on October 31, 2009 at 11:08 AM

Rahm and Obama are soaking their panties with excitement over this. How much will taxpayers of CA take before they revolt?

Monica on October 31, 2009 at 11:08 AM

Sheesh, some people are just against revenue.

Kafir on October 31, 2009 at 11:10 AM

They should counter by increasing the number of their deductions. Up your dependents by two and it will wash out.

ray on October 31, 2009 at 11:10 AM

Loan? We’re still paying a temporary tax on our phone bills to finance WWI.

Akzed on October 31, 2009 at 11:11 AM

If we could get rid of Los Angeles Liberals and San Francisco Liberals the state would be reliably conservative. We have been over run by liberal from all over the nation. They have flocked here from every state in the Union, and from the Socialist state to the South to nest here.

The Libs are currently being redistributed back to their native environments and this will likely take a few years. Unfortunately the Libs have just about demolished the state, and a lot of good people are gone.

Kjeil on October 31, 2009 at 11:11 AM

Indeed, yhe patient zero mentality of, especially, the leftwing upper middle class is amazing. We’ve seen many iterations of this, and it shows no signs of stopping.

Vote in local leftists, watch your city fall apart. Move to the burbs. Vote in state wide leftists. Watch your state fall apart. Move to another state. Vote in the same sort of leftwing morons. Wash, rinse, repeat.

I know the left has a real problem with history – but when you fled the results of leftist governance YOURSELF a few years before, what the hell?

18-1 on October 31, 2009 at 11:08 AM

UGH. So true. We’re living that in the South with all the New Englanders leaving their broke and corrupt states to do the same thing here and it’s horrifying.

Monica on October 31, 2009 at 11:12 AM

Am I glad I don’t live in California. As if the natural disasters aren’t enough, as if Hollyweird isn’t enough, as if the illegals aren’t enough, as if all the lefty freaks aren’t enough, then there’s the marxist government.

Really, is California so great that putting up with that is worth it? Get out now, before they erect a wall and you are trapped inside.

keep the change on October 31, 2009 at 11:12 AM

Great state, crappy government. Sadly it’s probably beyond saving. What happens when a state collapses financially, morally and socially?

Mason on October 31, 2009 at 10:46 AM

Not sure.

But I’ll have a front row seat when it happens!

BallisticBob on October 31, 2009 at 11:12 AM

Dammit this means more of those tofu lovers coming to my state…. I have enough of them as it is!!!

Seriously, when will someone challenge this in the legal system?

catlady on October 31, 2009 at 11:12 AM

Any Californians here to say whether taxpayers can just up the number of dependents to compensate?

Dusty on October 31, 2009 at 11:13 AM

Ok I feel bad for lumping in sane Californians with those who elected Pelosi, Boxer and Newsome; you people don’t deserve the azzhats who are destroying your state.

I guess the question is how many people will now desert the state?

Bishop on October 31, 2009 at 11:01 AM

The demographics in California are just as frustrating as they are in New York state. All the political power is in the hands of the ultra-liberal cities, SF and LA, inflicting this idiocy on the sane people in the mountain and farming areas. Then you have the large dependent underclass and state employees who just want their goodies. Even when we can get Republicans elected, their hands are tied by the all-powerful public unions.

We want to beat tracks, but where to go? Against all odds, we both have kept our jobs, but every drip drip drip of state oppression is pushing us out the door anyway.

evergreen on October 31, 2009 at 11:14 AM

Is this even legal?

Can CA really go “You only owe us X amount of tax, but we’re going to take X+1 amount from you and maybe give you back the +1 at a later date”???

Who allows that?!

Techie on October 31, 2009 at 11:14 AM

Who allows that?!

Techie on October 31, 2009 at 11:14 AM

In soviet russia…

the_nile on October 31, 2009 at 11:19 AM

You’ll be repaid any extra withholding in April.
In “vouchers”? Rubber checks? Real money?

Wethal on October 31, 2009 at 10:36 AM

I would demand mine “in GOLD!” G. Gordon Liddy

jpmn on October 31, 2009 at 11:22 AM

Watch California … it’s a microcosm of what’s going to happen to the U.S. if Obama’s agenda is passed.

What they don’t realize – they are only kicking the can down the field – and not even very far. California is being crushed under the mountain of it’s debt and big government welfare / entitlement programs. Simply put – California is “re-proving” the algorithm that Socialism fails everywhere it’s tried.

Obama is going to have the whole United States proving it.

What needs to happen is that the lawmakers need to immediately stop every unnecessary government program no matter what special interest they were designed for.

They won’t do that though.

What will happen is that eventually the people will get tired of being cheated like this – and the producing people in California will revolt. Peacefully at first – and then later – they’ll pack up and leave. In fact – strike that – they are already leaving in droves.

California now – is not such a great example of America anymore now is it?

HondaV65 on October 31, 2009 at 11:26 AM

I hope that they don’t get I.O.U.’s instead of tax rebates.

JakeRightThought on October 31, 2009 at 11:30 AM

Bwaaaa! Reap what you sow, Californians, these are the dirtbags you elected.

Bishop on October 31, 2009 at 10:32 AM

I’d be careful of smart-ass snickering over the plight Californians find themselves in. As we have been reminded ad nauseum during the good times, whether it be the latest fashion, slang or green initiatives like CAFE standards. California sets the pace with the rest of the union falling into step behind them. Whatever the fiscal conditions of other states, the Fed often adopts their practices. And we know their fiscal condition.

This could set a precedent that a cash strapped Treasury could instruct the IRS to implement with Federal witholdings. When you look at the financial crisis created by prgressives profligate spending, do you really think this kind of confiscation beyond their reasoning? When the bills come due, surely they’ll cite California’s precedent as justification for doing the same with Federal witholdings.

As usual, California is a harbringer of what follows for the rest of us.

This is an ominous precedent

Archimedes on October 31, 2009 at 11:32 AM

Yep, we’re as happy as pigs in shit with our wonderful state legislature. It’s not like the state can’t finger just those who OWED taxes last April. It’s not like the state can’t identify those who GOT A REFUND last April. Nah, they’ll just rip an extra 10% from everyone. So that means citizens will have 10% LESS to spend. Which will mean LESS sales tax revenue. Which will cause a BIGGER shortfall in taxes collected. WE SURE GOT US SOME SMART FOLKS UP THERE IN SACRAMENTO. Maybe if they all weren’t high as kites on marijuana……………….

GarandFan on October 31, 2009 at 11:34 AM

My expectations of the people of CA are so low now that they are probably in line with the expectations of the people of CA. I will be surprised if anything changes after the next election cycle.

SKYFOX on October 31, 2009 at 11:36 AM

Bwaaaa! Reap what you sow, Californians, these are the dirtbags you elected.

Bishop on October 31, 2009 at 10:32 AM

And “you” as a citizen of the US elected Barack Obama, so by your reasoning, you should just shut up and take it.

evergreen on October 31, 2009 at 11:37 AM

I left CA about 13 years ago. High taxes, and near impossible to be a small business there. There is a tax for everything. They take every chance they get to put there hand in your pocket. Great state to live in, just not earn any money in…. hence their massive illegal issues.

bbordwell on October 31, 2009 at 11:37 AM

As long as the welfare and medicaid keep floating out to the illegals it is all gooooooood.

jukin on October 31, 2009 at 11:39 AM

evergreen on October 31, 2009 at 11:37 AM

Heh.

BallisticBob on October 31, 2009 at 11:39 AM

Just make sure to up your exemptions so that you owe them on April 15th.

jukin on October 31, 2009 at 11:41 AM

Actually, I just had the solution to California’s mess.

What is teh actual issue in play? CA has too many government workers to support with its economy. Right now, the government is trying to figure out ways they can take more money from the taxpayers in the private sector to pay all these government salaries, without specifically “raising taxes”. Government workers want the tax increases, since it will give them job security and perhaps raises/benefit increases, but the private sector workers can’t afford to pay any more.

So what is the answer? The government worker tax. Double the tax rate of all tax payers that work for the government of CA. This will instantly give the government more money, and it will be “recycled” back to said state workers. Since the state workers want a tax increase on everyone for their benefit, it is hard to see how they could object to paying more taxes themselves, right?

18-1 on October 31, 2009 at 11:44 AM

There won’t be any refunds, unless IOUs count. We won’t be getting any money outta Barry either. Better spend it all now and live off the govmint.

Kissmygrits on October 31, 2009 at 11:46 AM

Reading history – the German High Command wanted to take Poland and turn it into a hunting preserve — if the politicians — (the super rich ones) could tax everyone out of the state it would make a nice big yard and playground with a nice ocean view ..

wheels on October 31, 2009 at 11:47 AM

Bwaaaa! Reap what you sow, Californians, these are the dirtbags you elected.
Bishop on October 31, 2009 at 10:32 AM

The public has to answer for not supporting redistricting. We’re gerrymandered into a Democrat majority. 100% relection of incumbents who try again, the only turnover is voluntary vacancies or by death.

But on the one hand, you got a Democrat party that UNANIMOUSLY voted to violate the state Constitution by describing all taxes as “fees”…because the Constitutional requirement that all tax hikes get a 2/3 majority does not mention fees, dig? On the record.

And on the other, you got a Republican Party that ran on a solemn pledge to vote down ALL tax hikes, and not only caved, but spent $600,000 on advertising IN FAVOR of propositions to extend the tax hikes five years. (It failed, thank God.)

But Ed, you are wrong–most people will not get a refund anyhow, since the per child deduction was halved and the mortgage/rent deduction reduced as we raised rates on all brackets.

And then there’s the trebling the car registration fee to 2% of the value of the vehicle. And most counties have sales taxes at least 8%, and some places there’s a 1% city sales tax. In Los Angeles it comes to 10%.

Please pay attention to what the liberals do in California, HondaV65 is right…they insist this is what their values require.

Chris_Balsz on October 31, 2009 at 11:49 AM

Just make sure to up your exemptions so that you owe them on April 15th.

jukin on October 31, 2009 at 11:41 AM

I have been doing exactly that for dedades now seeing that withholding in general is nothing but an interest free loan to the Guv. However, I expect that legislation will soon come down the pike closing that loop-hole.

Archimedes on October 31, 2009 at 11:49 AM

Reagan must be spinning in his grave.

Sheerq on October 31, 2009 at 11:50 AM

I heard this on the radio yesterday driving through LA just as I was passing a building with a huge SEIU sign on it and wanted to scream at the radio and at the Dems.

Of course, there is no effort to go after the cash economy, because it’s mostly immigrant. The last estimate is that it costs the state $6 billion in revenues.

PattyJ on October 31, 2009 at 11:54 AM

Where California leads the U.S. follows, or at least the federal government. Entitlement cuts are in the future and not single payer. The health care debate this year has been some kind of freaky carnival.

DFCtomm on October 31, 2009 at 11:56 AM

Oh no! Here comes more liberal calinuts moving to Arizona!
GAAAAAACCCKKK!!

jbinnout on October 31, 2009 at 10:41 AM

I was just thinking the same thing about Texas. Looks like Austin is going to get a little weirder.

conservnut on October 31, 2009 at 11:59 AM

I would demand mine “in GOLD!” G. Gordon Liddy

jpmn on October 31, 2009 at 11:22 AM

I LOL’ed

fiatboomer on October 31, 2009 at 12:01 PM

There is no distinctly Native American criminal class…save Congress.
-Mark Twain

Johan Klaus on October 31, 2009 at 12:05 PM

I have a tip for you……Shrink the size of the state government! Leave people money alone……you already take more than your fair share.

BigMike252 on October 31, 2009 at 12:12 PM

Talk about taxation without representation!

WOW! just effing wow.

Lonetown on October 31, 2009 at 12:14 PM

I was just thinking the same thing about Texas. Looks like Austin is going to get a little weirder.

conservnut on October 31, 2009 at 11:59 AM

Note that Austin is on the Balcones fault.

Johan Klaus on October 31, 2009 at 12:16 PM

Three words: Forced Economic Slavery.

madmonkphotog on October 31, 2009 at 12:26 PM

OMG! frakkin outrageous! come to AZ cali peoples, we have lots of available houses here too you can move right in

ginaswo on October 31, 2009 at 12:26 PM

Hey Ed, what’s the problem with this? California is just “spreading the wealth around” in the best tradition of the Dear Leader. The wealth is being spread around from working people to the unions that elect Dem legislators.

Cicero43 on October 31, 2009 at 12:29 PM

The people of CALIFORNIA need to get to the state capitol and bum-rush the building and take it over!!!!

I’m from Ca. but wont go back. All those idiots who voted for these monkeys get what they deserve. F-um!

Lisa on October 31, 2009 at 12:31 PM

A friend sent me a message last night. He said it’s creepy but it would appear the elite political class is doing everything in their power to push us toward revolution.

Metanis on October 31, 2009 at 12:36 PM

Flee, Californians…flee!

The mantle of idiocy hangs heavy upon your state. Whatever it is that you like about living there, it’s simply not worth it anymore.

James on October 31, 2009 at 12:49 PM

Metanis

Only us wonks who listen to talk radio know about the child credit being halved. Most people have no idea what’s coming.

Come April 2010, it is gonna get ugly.

Chris_Balsz on October 31, 2009 at 12:50 PM

It is sad that a state with such natural beauty and so many resources can be turned into a Crap Bag of illegal immigrants, lazy retards posing as hippies, race-baiting creeps who rule ethnic enclaves, freaks, stoners, and Democras

I spent a week earlier this month in northern Cal–most of the people seemed shell-shocked; stunned; whatever, man…..

Janos Hunyadi on October 31, 2009 at 12:57 PM

Unbelievable to me how far this state has fallen. I worked in the California Assembly in 1990, the first year they had a real budget problem, and it was solved pretty quickly and in a bipartisan fashion. Legislators were forced by public demand to forego their own salaries until they resolved it. That seems like ancient history now.

rockmom on October 31, 2009 at 1:16 PM

***
The Gubinator and the Sacramento Crooks won’t steal the money. They would rather owe it to you forever than to cheat you out of it. Here come more worthless IOU’s.
***
There will be “blood in the streets” of Austin, Texas if any politician tries to put in a state income tax here.
***
Keep voting in those “democRATS” and liberals in Kalifornia–and keep enjoying their Orwellian style “benefit increases” for all. Stay of of my Texas.
***
John Bibb
***

rocketman on October 31, 2009 at 1:17 PM

Time to cede California back to Mexico. They deserve each other!

Or at least the left coast elites. The rest of the state can become East California or something. ^_^

Orange Doorhinge on October 31, 2009 at 1:20 PM

Just make sure to up your exemptions so that you owe them on April 15th.

jukin on October 31, 2009 at 11:41 AM

This only works at the federal level. States don’t allow variable withholding, that’s why most people get a refund on their state taxes every year. I’m waiting for Congress to eliminate this on federal taxes as well. I and many others I know have “gone Galt” this year and drastically incresed our exemptions to cut the amount we are sending to the thieves in Washington.

California also is one of the few states with a graduated state income tax, so this increase in withholding will especially hit the higher-salary workers — exactly those who have the ability to leave the state or convert to the cash economy or become independent contractors in order to avoid all withholding. I predict this will backfire on the state and actually reduce revenues.

California should be CUTTING taxes for individuals and especially for businesses right now, not increasing taes and withholding. Dumb, dumb, dumb idea.

rockmom on October 31, 2009 at 1:23 PM

The only difference is that California can’t print money like the federal government can. California is in much better shape than the US government will be once China no longer can keep up with buying dollars in order to keep their own currency down. Then the US deficit will be unfundable and there will be massive federal tax increases.

pedestrian on October 31, 2009 at 1:26 PM

I think Californians should plan to go on a week long strike after the first of the year. Ayn Rand, we need you!

paulsur on October 31, 2009 at 1:30 PM

There WILL be an exodus from California, unfortunately it won’t be just their desirables that flee.

scotash on October 31, 2009 at 1:33 PM

Sackett on October 31, 2009 at 10:57 AM

While the First Amendment is making a dent in the aims of the political class, in the states and DC, it makes me sick to say that the Second Amendment is closer to activation than ever in my lifetime.

God bless us all that we don’t have to go there.

Harry Schell on October 31, 2009 at 1:37 PM

Doughboy on October 31, 2009 at 10:51 AM

How do you atone for something you have consistently voted against. I finally gave up and left California because my votes were not making a difference.

chemman on October 31, 2009 at 1:43 PM

I have lived in CA for 50 years. My mom is 80 and plans to die here. So that’s that, can’t leave.

It reminds me of a family of fools, trying to figure out how to juggle credit card debt so they can get more trinkets. At some point, either the house of cards comes crashing down, or somebody gets some sense and practices a little discipline. Fat chance.

I’m in a rural valley where people have ranched for generations. It’s not easy to walk away from what you and your ancestors have sweated and bled for. We don’t count, though. Not in politics, or several other ways. We get the worst quality produce, the worst telephone service, the worst gov. services, and are just dragged kicking and fighting into whatever the city people want.

jodetoad on October 31, 2009 at 1:46 PM

It was obvious they would do something like this. I still see a sales tax increase and more gas tax in the very near future.

Californians should revolt but that won’t happen.

Anders on October 31, 2009 at 1:48 PM

ginaswo on October 31, 2009 at 12:26 PM

Nice. While we have our problems in Arizona we don’t need the same situation to develop here as in California. Most of these homes you are talking about are located in Phoenix and Tucson. At best they are purple zones in a red state. With enough population they can turn this state purple or blue. That is what happened in California the Big Cities have all the districts and the rural conservative areas got screwed.

I came to Arizona to get away from that and here you are encouraging the same thing.

chemman on October 31, 2009 at 1:53 PM

There will be “blood in the streets” of Austin, Texas if any politician tries to put in a state income tax here.
***
Stay of of my Texas.
***
John Bibb
***

rocketman on October 31, 2009 at 1:17 PM

Remember the fire in the governors mansion when Perry tried to force the trans Texas corridor on us Texans.

Johan Klaus on October 31, 2009 at 2:00 PM

I feel no pity for liberal Californians

nagee76 on October 31, 2009 at 10:46 AM

A point to remember is that California, the most populous state, has more Conservatives living there than any other state. We need to find ways to help the good folks in California prevail over the liberals.

RJL on October 31, 2009 at 2:06 PM

ust make sure to up your exemptions so that you owe them on April 15th.

jukin on October 31, 2009 at 11:41 AM

You can do that. I do that now. However, make sure you estimate with exactitude because there are penalties for under-withholding. Yes, a penalty for not paying your taxes in advance.

PattyJ on October 31, 2009 at 2:12 PM

How many Californians will not find out about this until they get their first check that’s 10% light on take home pay?

Oldnuke on October 31, 2009 at 2:26 PM

Hey Kali-for-nians!

Look up Form W-4. You can claim up to 10 personal exemptions without documentation to prove you’re entitled to them, thereby reducing the amount the state witholds.

Both sides can play this game.

If CA is like most states, the federal exemtions are handled the same way by the state.

BobMbx on October 31, 2009 at 2:32 PM

Swell.

…Hey, I’m rolling in money anyway, the state surely needs it more than I do.

/s

Hawkins1701 on October 31, 2009 at 2:44 PM

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