Sunday, November 1, 2009

Your paycheck is going down!

Did you know that as of Nov 1st the state will be taking an additional 10% out of your pay check?

Welcome to Kalifornia!

This tax increase does come back to you in April (or whenever you do your taxes). On a yearly basis you end up paying the same. They will refund you (if they have any money) or you can fight this one off my changing you withholding (claiming more dependents etc). They sorta slid this one in when we weren't looking.

14 comments:

S said...

Interesting. Is this a new thing this year because of the money problems California is having? Do you have any sources for this info?

golfer_X said...

http://www.latimes.com/business/la-fi-state-tax31-2009oct31,0,2028140.story

Tyrone said...

I'm now importing most of my household products from other states. It's great; find a good site with competitive or cheaper prices, get free shipping, no state taxes, and save big. This was my response to seing that 9.25% sales tax on a receipt.

FU Kalifornya!

Hugh said...

Golfer X,
Just wanted to clarify - the state is not taking an additional 10% of your take=home pay, they are instead increasing your California withholding by 10%.

I'm still not happy about it, but it does only work out to an extra 1% of your total pay.

boxrs4sale said...

My wife and I love Cali, but have considered relocating because of this.. Not that it will break us, but in addition to the 10% increase, didn't they recently raise sales tax from 8.25% to 9.25% ? And didn't car registration/tax go up as well?

It just seems like a neverending cycle and they are going to keep nickel and diming us until we're left with nothing.

golfer_X said...

And in addition to those tax increases, they dropped the income levels for each tax bracket. They also reduced the child tax credit. You used to get $309 now you get $99! Taxifornia!

boxrs4sale said...

Yeah, this is just annoying. They need to cut a lot of these state/gov workers out here who contribute very little (if anything) to productivity.

I'm a contractor (have to work hard or I get axed) and see people sit all day and surf the net, not to mention landscapers/yard workers who mow grass weekly - and there is nothing to cut.

There is so much waste it's unbelievable.

The worst is when the state/gov workers complain that they aren't getting the pay raise they got last year.. Yet they are still making $70k +/yr to do nothing.

Rob Schloss said...

Yeah living in CA is difficult as it is, but we are starting to see the penny pinching everywhere. We went to one of the state parks this weekend. The parking fee is usually $3. Now it's $15. We asked the person in the booth about it and he said that the state has cut all funding to parks and rec. Just another example.

Martin Burtin said...

I was sorta looking fwd to buying a home in the IE pretty soon, but I'm going to take a good look at some other states. Kalifornia is looking less like my home state, and more like the state I prefer to be "from". Heck, I'm not even sure I'd like to disclose I'm from here as the locals in some areas are disgusted with us for f'n up our state and then transferring the same values to areas where we move, rather than changing to fit in. The only trouble is I'm pretty entrenched here.

golfer_X said...

I like Utah and Idaho. I'd move to the Salt Lake area in a flash if my wife would go. But her family is here, so she is staying put. It's a wee bit cold in the winter but the rest of the year is real nice.

tim said...

@boxrs4sale, registration for my Ford F250 truck cost me $500 last year. This year, it's $620.

And FYI, sales tax went up too, but it varies from location to location. I believe in some parts of Southern California, it's as high as 10.25%.

VectorzSigma said...

golfer_x: remember what I said about inflation? All the accounts here alone are proof i was right. It's only been 1 month since I said it, nonetheless, what's going to happen in 5 years?

boxrs4sale said...

@ Vector - it's not really inflation. We're have credit contraction; state/local budgets are hurting because of the loss of revenue. The only way to balance the budget/deficit is to raise taxes. We have 13% + unemployment, no one is spending, people are not buying much new anymore and prices are dropping on homes/rents/EVERYTHING except for f***ing taxes.

We're in a big hole.. All that funny money that's been printed we'll never see.

You should check out mish @ globaleconomicanalysis.com. He explains it better.

naturalherbalskincarebeautytips said...

This is awful; they are increasing the taxes and reducing the child tax credit that too a huge reduction. This is a huge burned on people.