Paychecks Shrink to Beef Up State Coffers

Industry_fire_1110_1200x675_806228035782.jpg
Getty Images/Comstock Images

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 AP - Associated Press
Contact Us