Your Personal Income Tax = Now Higher
This morning the state announced higher income taxes and more cuts in programs because stimulus money earmarked for the state budget was not enough. Basically, last month's budget plan said if the state doesn't receive at least $10 billion from the feds, more taxes and cuts were going to happen. Well, it happened, California got $8.17 billion.
"So instead of a .125 percent personal income tax surcharge, taxpayers across all income levels face an extra charge of .25 percent. The surtax will generate an estimated $1.8 billion and cost a family of three making $80,000 about $100 more each year," reported the Mercury News. "Nearly $1 billion in program cuts will also go forward. Low-income people enrolled in Medi-Cal will lose their dental coverage; cash payments for welfare recipients, the elderly and disabled will be reduced; wages for workers who care for the elderly and disabled in their homes will be cut; and the budgets of the state's university and court system will be trimmed. Universities, which were already facing steep cuts, will see their budgets shaved by another $100 million."