A California Republican

In February the Legislature and Governor approved a set of “reforms” that raised taxes. The sales tax went up to 1%, the vehicle license “fee” went up to 1.15% of a car’s value and income tax was raised 0.25%. These were all approved as aprt of the “budget solution” that is nothing like a solution.

Now, a few months later, the Legislature passed another budget solution - but this one was $200 million out-of-balance, so the Governor vetoed some money out of it. The Legislature is suing the Governor, saying he cannot vetoe anything in it because there were no appropriations.

Believe it or not, this particular tax bite we are all going to feel has nothing to do with the Legislature. In fact, the state tax board automatically adjusts, each year, the income levels where the tax brackets start and stop. This year, because of the deflation in the economy (or what the tax board is calling deflation) the income levels were dropped for the various tax brackets.

With these newest changes, for a married couple filing jointly, the top tax rate of 9.55% now begins at $92,698, instead of $94,110. Combined with the earlier increases, such a couple with two children, earning $100,000, will see their California income tax bill rise by 22.3%, or $716, according to the state Franchise Tax Board. Their tax would go from $3,208 to $3,924, factoring in a $110 drop in the standard deduction for joint returns. This doesn’t factor in charitable donations or any other deductions.

So now people are going to be paying even more taxes. If the state wants to stimulate the economy, it shouldn’t make people pay more to the state.

To shoe just how ridiculous and economically stupid the people in charge are, the Legislature agreed to increase withholdings from paychecks, starting in November, to 10%. This is a general state income tax withholding, regardless of what level you claimed on your forms, or what amount you wanted withheld. The state is helping itself to 10% of your paycheck - even though it knows they are not entitled to the money. The state admits that most of this money is going to be given back in tax refunds (or IOUs), but they are going to take the money anyways.

This smells of illegal conversion of personal property - or personal wealth - grand theft in some cases. Anyone up for filing a law suit?

There is no surprise that polls are finding that people in California don’t trust their government - just look at the way they are acting. They raise taxes without every really raising taxes, simply by lowering the income levels for the tax brackets. Then the state goes and helps itself to your paycheck, knowing that the money belongs to the workers and not the state. Trust has long since been lost between the state and its citizens.

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