Paychecks Shrink to Beef Up State Coffers

Updated 1:47 PM PST, Tue, Nov 3, 2009

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You may notice a little less in your paycheck starting this month. California employers are now required to withhold 10 percent more in state income taxes to help ease the budget crisis.

It's part of a plan to artificially inflate state revenue by $1.7 billion through next June.

Brenda Voet, a spokeswoman for the state Franchise Tax Board, said it's technically not a tax increase since workers will get their money back after April 15.

You'll still probably see the difference. For example, a person making $51,000 a year will get about $4 less a week.

Copyright Associated Press / NBC San Diego

First Published: Nov 3, 2009 6:54 AM PST

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{"totSize":4,"payload_type":"json","status":"1","results":[{"anonName":null,"pathToMedia":"392724_68844997","adminTags":null,"views":261,"createdBy":13245164,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Paychecks Shrink to Beef Up State Coffers","parentThreadId":null,"mediaId":2632514,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"3 Nov 2009 17:37:31 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":4,"reviewed":true,"createdByUsername":"richo","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1174700","subject":"","averageRating":0,"body":"yea, but I'd bet that the thieving corrupt politicians (who came up with this brainstorm of an idea) are getting their full checks--(although, even if they had 10% taken, what the hell difference would that make?? they are vastly OVERPAID as it is...!!!)"},{"anonName":null,"pathToMedia":"392724_68844997","adminTags":null,"views":261,"createdBy":9229842,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Paychecks Shrink to Beef Up State Coffers","parentThreadId":null,"mediaId":2632514,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"3 Nov 2009 17:59:44 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":4,"reviewed":true,"createdByUsername":"RichardRider","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1174929","subject":"","averageRating":0,"body":"The lawmakers will have their staffers file for them a new W9 to increase their exemptions so that they will suffer no increased withholding (all quite legal). You can do the same, but most won't know that. And do we need to burden our overregulated businesses with this new wave of paperwork? Let's see. Government at every level is talking "stimulus." More money in consumer hands to increase buying. So how does taking money OUT of our paychecks just as we move into the holiday season stimulate the economy? It stimulates ME, but not sure that's what they had in mind. Even more interesting is this question: With our destitute state, how on earth is the state going to refund the overwithholding (without interest, of course) next spring? Remember this summer, when the state was issuing I.O.U.'s? Odds are, that's what we'll get in the way of tax refunds."},{"anonName":null,"pathToMedia":"392724_68844997","adminTags":null,"views":261,"createdBy":7918844,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Paychecks Shrink to Beef Up State Coffers","parentThreadId":null,"mediaId":2632514,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"3 Nov 2009 21:28:51 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":4,"reviewed":true,"createdByUsername":"anonymous_user","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1176988","subject":"","averageRating":0,"body":"what an absolute crock of crap i already dig though my damn change at the end of the month for gas to get to work and get a .99 cent taco for my kids"},{"anonName":null,"pathToMedia":"392724_68844997","adminTags":null,"views":261,"createdBy":7918844,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Paychecks Shrink to Beef Up State Coffers","parentThreadId":null,"mediaId":2632514,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"4 Nov 2009 10:12:01 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":4,"reviewed":true,"createdByUsername":"anonymous_user","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1180145","subject":"","averageRating":0,"body":"Oh how nice... NOT. My husbands unemployment expired last month. We're existing on my paycheck now. We're living paycheck to check and breaking even each month with our house hold expenses. When this 10% extortion tax comes out of my paycheck we'll be in the red. So, do we pay our rent or do we let some bills go past do? Do we eat or do we starve? To the governor and his household $200 bucks is nothing, but to us losing $200 is catastrophic!"}],"error":"","totPages":1}