Don't Shoot The Messenger
Well I have bad news and worse news. What shall I start with?
First, you may notice a smaller paycheck starting this Sunday, as the state will withhold 10% more taxes from us. Yep, it's an interest free loan we all get to give to the state, whether we want to or not.
Are you having a hard time making ends meet? Are you living paycheck to paycheck, budgeting your expenses to the dime? Cutting back on driving? Cutting back on food expenses to cover medical expenses?
Well, sorry, but Sacramento needs your money! Rather than decrease the size of the government and the expense that comes with it, they've increased the number of employees. And well, it's just darn hard to balance a budget when you can't control your spending habits.
So that's where we come in, the average hard working Californian gets to "share the burden".
The only way you can get out of giving away your money interest free, against your will I might add, is to be just as creative as our legislators.
According to a spokeswoman for the state's Franchise Tax Board, "People can get out of this," she said, noting that most people would have to change their allowances through their employers. California's budget leaders are banking on the hope that most won't."
When I file my tax return this year, I think I'm going to list two additional dependents. The federal government, and the state government.
Second, America’s largest public-pension fund, Calpers, which is what our employees have and those of every other city as far as I know, shockingly revealed that one of their board members reaped more than $50 million in fees for arranging investments that could saddle state taxpayers with hundreds of millions of dollars in losses.
Calpers has lost MORE THAN 50 BILLION in bad investments. Guess who gets to pay for this? Yes, yes, right again, WE DO!
Local governments are contractually bound to increase their payments to Calpers to help make up for investment losses of more than $50 billion in the fiscal year ended June 30.
Moral of the story? Pay attention, close attention, to who you choose to represent you when it comes time to vote. Your quality of life literally depends on it.
First, you may notice a smaller paycheck starting this Sunday, as the state will withhold 10% more taxes from us. Yep, it's an interest free loan we all get to give to the state, whether we want to or not.
Are you having a hard time making ends meet? Are you living paycheck to paycheck, budgeting your expenses to the dime? Cutting back on driving? Cutting back on food expenses to cover medical expenses?
Well, sorry, but Sacramento needs your money! Rather than decrease the size of the government and the expense that comes with it, they've increased the number of employees. And well, it's just darn hard to balance a budget when you can't control your spending habits.
So that's where we come in, the average hard working Californian gets to "share the burden".
The only way you can get out of giving away your money interest free, against your will I might add, is to be just as creative as our legislators.
According to a spokeswoman for the state's Franchise Tax Board, "People can get out of this," she said, noting that most people would have to change their allowances through their employers. California's budget leaders are banking on the hope that most won't."
When I file my tax return this year, I think I'm going to list two additional dependents. The federal government, and the state government.
Second, America’s largest public-pension fund, Calpers, which is what our employees have and those of every other city as far as I know, shockingly revealed that one of their board members reaped more than $50 million in fees for arranging investments that could saddle state taxpayers with hundreds of millions of dollars in losses.
Calpers has lost MORE THAN 50 BILLION in bad investments. Guess who gets to pay for this? Yes, yes, right again, WE DO!
Local governments are contractually bound to increase their payments to Calpers to help make up for investment losses of more than $50 billion in the fiscal year ended June 30.
Moral of the story? Pay attention, close attention, to who you choose to represent you when it comes time to vote. Your quality of life literally depends on it.
posted by Melissa Melendez at
12:36 AM
7 Comments:
Thanks for the information. How does the Franchise Tax Board recommend we get out of it? Increasing dependents? Is that legal?
It is perfectly legal to increase the number of your exemptions.
If you look on the back of the W-4 form it gives instructions on how many exemptions you can claim. People assume they are only entitled to one exemption for themself, one for their spouse and one for each of their children. NOT TRUE.
However, claiming more than nine will flag you with the IRS and you'll have to explain to them, through your employer, why you're using that number.
To understand the financial power of the W-4, consider the case of a married employee with a nonworking wife and two children and a $75,000 salary in 2008. If his W-4 claimed four allowances, the same number of exemptions he claims on his tax return, his employer would withhold $598 each month for the IRS.
A new W-4 claiming ten allowances would knock withholding down to $355—and put an extra $263 a month in his pocket. That's an extra $3,156 a year.
For more information, click on the title "Don't Shoot The Messenger" above, which will take you to an article published by Kiplinger. It has a lot of literally valuable information.
I think that it is just awesome for you to share this information with all of us. I am an employer as well as an employee of my company and it is a shame what our Government is demanding that we take out of our checks on not only the State level but the Federal level as well. Being a small company we have to match all withholdings per dollar that is taken out of an employees check and i've got to tell you some times it's hard to do that. This is exactly why companies are leaving California. With EPA standards, permits, licenses and so on they force us to barely survive. Great information, I love your blog...keep up the good work it'a nice to know someone is looking out for the people!!!!!!! If California wants to save money...cut off the welfare programs for the illegals, that will send them out of here and we could save billions!!!!!!!!!!!
Diana - you're very welcome. I try to keep it pertinent to what effects Lake Elsinore residents. Sometime though, what happens at the state level has a direct effect on us, and I'm more than happy to share the info and help us all keep more money in our pockets. We're one of the highest taxed states in the union already, it's a wonder anyone can pay their bills at all anymore!
Like I don't give up enough of my pay now. I have to pay my mortgage and then hope there's enough left for food, gas, and everything else, I don't need anymore hands in my wallet. Thanks for the info, think they'll let me claim 100 exemptions?
Are these people with calpers elected or appointed? Do we have a say in who gets to head this organization? How can these people continue with their jobs when they lose so much money?
Calpers are not appointed or elected that I'm aware of, I believe they're hired like everyone else. How do they keep their jobs after losing so much money? Good question, and I have absolutely no idea.
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