Budget Bites into Tax Withholdings

[katty]

more: http://www.news10.net/news/local/story.aspx?storyid=64236&catid=2#

SACRAMENTO, CA - Come November, you may notice your paycheck is a bit smaller. As part of the state budget fix, lawmakers are "borrowing" future income withholding taxes in order to raise $1.7 billion for this fiscal year.

"It's not raising taxes. It's just getting the money, borrowing from you for a short period, non-interest bearing, and you'll get it back later," explained Sacramento accountant Ken Astle.

Astle said that taxpayers can file a DE-4 form to change withholdings and increase exemptions to compensate for the extra withholdings.