State Starts Taking More From Your Paycheck

SACRAMENTO – You might start seeing a little less money on your next paycheck.

Starting this week, the State of California will be withholding 10% more from your paychecksindefinitely.

It’s part of the budget deal Governor Schwarzenegger and lawmakers reachedto solve the state’s budget crisis.

It’s not a tax increase. You’ll get the money back when you file your income taxes.

In essence, you’re lending money to the state interest-free.

It amounts to$1.7 billion.

“To take it from people’s weekly, monthly paycheck is just another dig in what’s already a bad economy,” said Peter Haas, a Loss Prevention Officer.

“It hurts a lot. I got two kids. That’s 10% out of their mouths,” said Musician Ayatollah Feesibiallah.

If you don’t want to be subjected to the additional 10%, you can change your state withholding form at work.