Income tax increase may cut down on spending money
Posted November 11, 2009 at 10:19 pm in Blogs, CampusNow
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Loading ...Students may have to adjust their spending habits because of a temporary, 10 percent income tax increase of 10 percent that is designed to relieve California budget constraints.
The new income tax, which began Nov. 1, increases the amount withheld from paychecks by 10 percent, according to the California Franchise Tax Board.
The amount withheld varies by tax bracket — for example, if a worker is taxed 20 percent, the worker will now be taxed 22 percent.
For many students who work part-time jobs, the increase is small, but still noticeable.
“Mentally, I tell myself I can’t buy as much,” said Justin Ng, a sophomore majoring in communications. “I work 10 hours a week … primarily for everyday living.”
The state intends to return the money when taxpayers file their returns in April.
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First of all, the top tax bracket in California is 9.3%, so your example of 20% becoming 22% percent is misplaced. It’s more like 0.93% increase (worst case scenario) in withholding. That’s less than one percent, or $9.30 for every $1,000 you earn. If taking home $9.30 less dollars mean you have to tell yourself to cut back on your spending, then you’re probably spending too much money as it is.