What if a mugger took you at gunpoint to the bank and made you hand over 10% of your savings? (He’s a compassionate robber.) What if he said he’d give you back the money–someday–but he’d keep the interest? I suppose you’d be grateful to be alive. But don’t Californians deserve more–or at least more honesty–from their own government?
The state Legislature’s proposed new state budget will tack an extra 10% on most people’s state tax withholding. The state gets to keep the interest, offering only only a vague promise that someday you’ll get it back as a tax refund. Does anyone think this doesn’t amount to a tax? The longer the state keeps the 10% extra, the more you lose.
Making this larceny worse, it also appears corporations will be the big winners in this trash heap of a budget, saving billions on their taxes in future years while individuals will be lucky to get back their 10% without interest.