Proving the Axiom

Another example of the old axiom that what starts in California follows in the rest of the country, or in this particular case, if it's a bad idea it, undoubtedly, came from California:

The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.


Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases.

So now the rest of the country can enjoy loaning the Feds an extra bit of their check every two weeks just as the unfortunate citizens of California have been doing for the past few months. On the bright side, avoiding this bit of chicanery is an unexpected benefit of being unemployed.