State's tax withholding bump-up starts today
By Mark Glover
mglover@sacbee.com
Published: Saturday, Oct. 31, 2009

Some call it California's cash advance.

Effective today, the amount of state income taxes withheld from California workers'
paychecks will increase 10 percent.

That might sound like a tax increase, but state officials insist that's not the case.

Tax experts agree, saying this bump up in withholding taxes gives the state some wiggle room
in managing California's treasury in a year that saw a titanic political battle to get a handle on
the state's budget.

The increased withholding comes on top of a 0.25 percent state income tax increase and a
reduction in the dependent credit, also enacted as part of the state budget.