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The other day I had a conversation with a good friend, Bruce Bialosky. He is a writer for Townhall and professionally a CPA. He was suggesting that the State of California was getting a yearly "loan" estimated to be in the range of $1.7 billion from the people of California.
How did I ask can the State do this? Who would loan that much money, any money, to the government and not ask for interest?
Bruce explained that the State raised the withholding tax by 10%--the LAO has estimated this would bring in $1.7 billion per year, interest free. Then in April, when you file your taxes, you get back the excess taxes paid. In other words a short term loan. The problem is that once started, it will be difficult to end.
He suggested a simple way for you NOT to loan money to government.
When you file your W-4 form. This is the form that tells how many exemptions you have. The IRS has a form and the State has a separate form. On your State form, he suggests, you add a couple of exemptions--so that no extra money is paid into the government as a loan. Of course, you should always ask your tax advisor about any changes.
But, thanks to Bruce Bialosky, you might be able to save your family money. That will mean the phony budget will have a higher deficit.
It is your family or government. Which do you choose to help? See the Wall Street Journal article about "California Stealin" by clicking on "read more"
More...
How did I ask can the State do this? Who would loan that much money, any money, to the government and not ask for interest?
Bruce explained that the State raised the withholding tax by 10%--the LAO has estimated this would bring in $1.7 billion per year, interest free. Then in April, when you file your taxes, you get back the excess taxes paid. In other words a short term loan. The problem is that once started, it will be difficult to end.
He suggested a simple way for you NOT to loan money to government.
When you file your W-4 form. This is the form that tells how many exemptions you have. The IRS has a form and the State has a separate form. On your State form, he suggests, you add a couple of exemptions--so that no extra money is paid into the government as a loan. Of course, you should always ask your tax advisor about any changes.
But, thanks to Bruce Bialosky, you might be able to save your family money. That will mean the phony budget will have a higher deficit.
It is your family or government. Which do you choose to help? See the Wall Street Journal article about "California Stealin" by clicking on "read more"
More...