California Budget Woes Force State Confiscation From Taxpayers. Could This Happen In Your State? Nation?

STARVING FOR CASH AND REVENUE TO PAY STATE EXPENSES, THE STATE OF CALIFORNIA IS SNATCHING ADDITIONAL TAX WITHHOLDING FROM TAXPAYERS

California is increasing state tax withholding by 10% effective this week. This isn’t a tax increase, they are simply collecting more of taxpayer’s money because the state is so starved for cash. The state is forcing taxpayers to provide the state with  short term funds! This brings new meaning to the idea of a “Payday Loan”.

Taxpayers and investors in this country need to take notice. California’s state budget problems may be self-induced and made worse by the current recession (see how other states are impacted by the recession), but other states could find themselves tempted to adopt such dictatorial measures too if our political leaders fail to make the correct political decisions, balance our budgets and reduce our debt at all levels of government. This provision was voted on and approved by the California legislature earlier this year.

Although this additional money collected from the increase in state tax withholding is technically supposed to be returned to California taxpayers when they file their tax returns in April of 2010, this is state government forcibly borrowing money from it’s taxpayers under the guise that it is OK, because they will get the money back. The increase in state tax withholding is currently supposed to continue through 2010. California state government is getting the use of taxpayer money, presumably for free.  Only months ago, the state was issuing I.O.U.s to pay for state services. Will California taxpayers get their refunds in a similar manner?

OBSERVE WHAT IS HAPPENING WITH LOCAL, STATE AND FEDERAL BUDGETS AND TAKE VOTING ACTION

American taxpayer’s must ensure that their political officials work to balance our budgets and reduce our debts. The accumulation of spending programs, fraud, abuse and corruption year after year weaken our government’s financial stability and push our governments to make desperate decisions. California may find it hard to increase state taxes to raise revenue. The state is already experiencing an exodus of business to neighboring states such as Nevada, which has more favorable tax environment. Every state and nation failing to reconcile income with expenses will eventually reach a tipping point at which taxes can no longer be increased to pay for spending programs without destroying the underlying economy.

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