Budget Proposal

[Hunter158]

Your representatives have proposed withholding double the current withholding rate to help them balance the budget.

They don't propose to double your tax rate, just double how much they withhold. Essentially borrowing money during the year, to pay it back at tax time.

OK, doesn't sound bad... until you consider that some are having a hard time making ends meet as it stands today... how much worse will it be for them when their take-home-pay is cut another 5%????

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OK, since no one seems to be interested in this... How about a gun connection? How will this change affect your savings toward your next gun purchase?

[Californio]

Your representatives have proposed withholding double the current withholding rate to help them balance the budget.

They don't propose to double your tax rate, just double how much they withhold. Essentially borrowing money during the year, to pay it back at tax time.

OK, doesn't sound bad... until you consider that some are having a hard time making ends meet as it stands today... how much worse will it be for them when their take-home-pay is cut another 5%????

The withholding tables given dependents etc are designed to evenly deduct your owed taxes over the course of the year. Doubling the withholding is nothing more than the Government forcing you to prepay taxes on money you have not yet earned, I would think that would be something to SUE the government over.

[johnny_22]

Just change your withholdings at the beginning of the year. Problem solved.
DE-4 form for State only (instead of W-4).

[rbgaynor]

I don't believe they are doubling the amount they withhold, they are adding an additional 10% of the amount they currently withhold. It's still a very dumb idea, but at least they are not doubling the withholding (a move that would be cripple the consumer economy).

[bwiese]

And you can still adjust your withholding according to your tax circumstances (deductions etc.)

I don't see how they'll enforce this esp if you end up paying the right total amount of taxes at end of year.

It's not a crime to pay the right amount of taxes.

Also: even if they jammed you somehow for an underwittholding penalty it may still be of less import than your having access to that money.

[Fjold]

From what I heard on the news this just applies to two income families (which is probably the majority now in CA).

[Theseus]

I am unemployed and still considered a dual income because I am still getting unemployment... I was gonna use this time to finish school and get a degree, but if I do I loose unemployment and can't pay the rent. . . but one of the things keeping me from finding work in my field is the lack of degree....

Fun system. Increasing my withholding without my actual debt burden so they can get an interest free loan to me is illegal. . . If any private business did that it would be illegal...so why would this be any different? Especially is it means I can't pay my electric bill?