Stealth State Income Tax Increases

Remember all that rhetoric from Sacramento just a couple months ago about no new or increased taxes? Well, it is sounding like more deception and sleight of hand has been foisted on the taxpayers.

We know that the Legislature and the Governor raised the car tax and the sales tax earlier this year, stating these were temporary measures to address the State budget crisis brought about in great part by the plummeting economy. After they approved those increases there was considerable public backlash, with the result being that the Dem’s in Sacramento gave up (at least publicly) on any further tax increases, and the Repub’s were even more adamant against any increased taxes.   So we got a new State budget balanced with borrowing, cuts and a few accounting gimmicks, but no increased taxes.

Or so we thought.

The T.V. News reported Thursday evening that the State Franchise Tax Board is implementing income tax changes that will reduce the benefit of itemized deductions, and also move many taxpayers into a higher bracket. The message being delivered is that everyone will see their State income taxes go up. This in spite of the Sacramento rhetoric about no new or increased taxes.

This is just not another tax the rich scheme.  It is going to impact many, perhaps everyone, subject to State Income Tax.

Next time I have any contact with a State legislator I am going to let him or her know that stealth tax increases are even more distasteful than doing it openly and directly. I hope you will do the same.