Withholding Going Up

As most working taxpayers will soon realize, beginning November 1st,
the state increased withholding by 10%. Officials are saying that
this is not a tax increase because at tax time you will owe no more
that before the increase.

Wrong!

It is a tax increase because all withholding is borrowing money from
taxpayers without paying interest, and an increase in withholding is
borrowing more money without paying interest. The result is more
money for government and less for taxpayers, which to reasonable
people is a tax increase.

Many taxpayers declare fewer dependents than the number to which
they are legally entitled to assure that their tax liability is
fully covered. If you are in that category, you have the ability to
counter this grab for more of your money by changing the number of
dependents you declare. However, it is always a good idea to consult
with your tax preparer first, before making a change.

To change the number of dependents you declare, you will need to
fill out a DE-4 form available on the Employment Development
Department (EDD) website if you want your decreased withholding to
just apply on the state level.

Howard Jarvis Taxpayers Association -- California's
largest taxpayer organization with offices in Los Angeles and
Sacramento.