(PR) 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.”