How does the new California budget affect families
Posted Feb 20 2009 6:11pm
With the Governor wasting no time, he has quickly added his signature to the newly resolved state budget which has closed the $41 billion dollar gap for California. Now that the dust is settling in Sacramento, how will it affect me and my family?
When will the state income tax refunds be mailed out? Who will benefit and who will be laid off? And of course, how will the school systems fair in all of this? So many questions. How will the national Stimulus Plan offset some of these state cuts? I hope to share with you as these details come online.
The financial package includes tax hikes, spending cuts and borrowing billions of dollars more. How will the tax increases affect the average Californian family? Here is the at-a-glance breakdown;
The are four types of tax increases in the current package; personal income tax, vehicle license fee increase, dependent tax credit and a sales tax increase. Recent legislative analysis of these four tax increases, an average family of four with an annual income of $75,000 would pay $963 more a year in taxes. That’s quite a punch in the gut, to say the least.
May 19th, 2009 is an important date, mark your calendars. There will be a vote to move $226 million from mental health programs and $608 million from programs aimed at children younger than 5 years old.
The state ultimately will resume paying all its bills, including tax refunds. But doing so could take weeks, so the exact date when California income tax refunds will start being mailed has not been announced. Mr. Chiang (State Controller), we are waiting with baited breath for your word.