San Diego Housing Bubble News and Analysis

I foresee a multi-billion dollar market in IOUs on Ebay.

BTW, is it legal to claim more allowances on a W-4 in order to keep this effed-up state's effed up hands' off my money? I don't mind paying my fair share of taxes, but I think it's pretty shitty that the state has confiscated more money from me than someone who makes the same but pays less tax throughout the year.

It's legal to claim whatever you want on the W-4. But if you pay a lot less than your fair share, you'll have to pay a penalty comes April.

Thanks for the tip. It wouldn't surprise me if tons of people increase their allowances causing California to be in even worse shape over the course of the next year (revenue-wise) than they would have been. The old law of unintended consequences.

I'm surprised their isn't a lawsuit in the works.

If you're as outraged about this as I am, go to:

http://www.assembly.ca.gov/defaulttext.asp

On the left hand side, click on the "Find my District" link. Type in your address to find who your representative is in the State Assembly and the State Senate.

Spend 5 minutes sending each of them an email, letting them know you're pissed, and expect them to find a solution to this problem.

Who knows how much good this type of "civic" involvement does, but who knows, if public outcry is loud enough, maybe the morons in Sacramento will figure out how to solve this.

Well I got my refund from 2006 today after I did an amendment...

Bad news is i just overpaid my 2008 taxes by 5000 this year. Oops. Looks like for next year I'm going to be claiming "10" for CA withholding :)

I better go cash in my CA refund check before it bounces :)

Where is the movement for Arnold to be recalled? Seems like we're in even more dire straits than we were with Gray Davis.

http://latimesblogs.latimes.com/lanow/20...

Gov. Arnold Schwarzenegger, who won election in the first recall of a California governor, has now become a target for removal himself.

The state's well-financed prison guards union, the California Correctional Peace Officers Assn., is initiating a recall effort against Schwarzenegger, a union spokesman said today. The governor and the union have been at odds for years; they have been unable to agree to a new contract for the guards, whose labor agreement expired in the middle of 2006.

The state sounds more like mafia to me. I can not believe how they can hold our tax refunds. That is our money.

Yes, it is our money. The money for the trillion bailout is our money too...

Remember:
"ask not what your country can do for you - ask what you can do for your country."

That is our money.

If its your money, why isn't it in your checking account. Oh thats right, cuz its not your money.

Just decrease your withholding next year. Its not like this sort of confiscatory behavior hasn't happened before.
Josh

I doubt if its constitution for them to withhold refunds and give iou's. I think that would be the same as issuing currency and states don't have that power.

I say issuing currency because I would expect them to be negotiable or else there is no reason to issue them.

John

If you have been getting large refunds over the past years, you need to increase your allowances. The idea is to select a number that tries to get as close to 0 for your tax bill as possible.

These are the very people and public employee unions that have caused much of California fiscal problems.

Arnold should stand up to these thug unions.

BTW: normally - at least for private companies - I support unions.

It seems like CaliCash to me as well.

Arnold needs to stay and the entire State Gov't should be replaced! This is rediculous when they're arguing for raising taxes with very few cuts in spending. I'm not paying more so legacy workers can suck more off of the dried out teet.

Cut now and cut hard and then raise taxes.

if you have a overpayment just apply it to the 2009 taxes and then cut your withholding to zero CA taxes to be withheld to make up for the application. Once you "make up" for your overpayment, then consider switching your withholding to the normal rate.

Or, just switch states.
More and more people are doing it.

EconProf,

Are you in CA and are going to switch? Which no tax state do you like better?

I split my time between CA & AZ. Wish I could chose to pay my taxes in AZ instead of CA.
No, of course I'm not looking for a "no tax state". Just one where taxpayers get more for their money and the public unions don't own the party hacks running the legislature. By that standard, any adjacent state will do.