The Tax Man Cometh–Again

State of California to Take Additional
10% Tax Out of Paycheck

Paycheck Income Tax Withholding Increases 10%
In November and December, due to Budget Deal last May

SACRAMENTO — Just in time for the holidays, the State of California
will once again dip into the wallets of taxpayers in California.

As part of the budget deal negotiated last May, Californians will
see an additional 10% in income tax withheld from their paychecks in
November and December.

“This is a real ‘bah humbug’ to California taxpayers, who are
already overburdened this year,” said Jon Coupal, President of the
Howard Jarvis Taxpayers Association. “This is precisely what we
meant when we said the Legislature was kicking the can down the
road. Now, at the height of the recession and with the highest
unemployment rate in history, the state will gladly pick the pocket
of millions of taxpayers this holiday season.”

The change is due to the legislation (ABX4-17) passed by the
Legislature and signed by the Governor to accelerate tax collection
due to the State budget crisis. The “income shifting and tax
acceleration provisions” require employers to increase by 10% the
amount of income taxes withheld, based upon an employee’s current
withholding designation.

“The Legislature pretends this isn’t a ‘tax increase’ since it
occurs six months later and it comes out of your paycheck in the
dark of night,” said Coupal. “But to the millions who are struggling
to keep their jobs and put food on the table, this smells like a
tax, acts like a tax, and looks like a tax. It’s a tax.”