Oct 29, 2009 4:16 pm US/Pacific
California To Begin Holding More Of Your Paycheck
SAN FRANCISCO (CBS 5) ―
-
-
California will begin withholding 10 percent from your paycheck starting Sunday.
AP
Starting Sunday, your paycheck will be a little bit smaller as the state begins withholding more from your paycheck to deal with the budget crisis.
"Neginning on November the first, there will be an additional 10 percent withheld," said H.D. Palmer, spokesperson for of the Department of Finance.
The state is closing part of this year's budget deficit by taking an advance on next year's tax revenues.
"It's a one-time acceleration, or on-time speeding up if you will, of tax dollars that would otherwise be collect next fiscal year."
But the state wants to make clear that the change, which has no cutoff date, is not a tax.
"This action in no way shape or form changes anyone's tax liability," said Palmer. "It just alters the amount that is being withheld."
California is taking more, but it's not a tax increase, because the state is going to give you the money back.
Come next April, if you owe taxes, the extra 10% will come off your bill. If you're due a refund, the extra 10% will be added to your refund.
"It's obviously aggravating that they need to pull a little bit more than they're already pulling…just to make ends meet in their own office," said Jesse Gillingham of San Francisco. "It's like the credit card scheme, you're always playing catch-up."
In our video report, we look at how much some Bay Area workers will feel the pinch of the new withholding, and talk to some who say the plan is no way to balance the budget.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
Reporting
Comments