I often find myself saying – I wish I lived in California. But that’s about to change. As most of us already know California has gone deep, and by deep I mean deeeeeep in debt. They are trying to find ways to keep their head above water and are coming with every possible ways to do so. Recently, they ran a “Great California Garage Sale” which took place on Aug 28 and 28, 2009. Although many were mocking their ideas, it seems to have paid off as they raised $1.6 million in sales.

The state of California is trying a new tactic now – borrowing money from tax payers. Yup, borrowing, not directly taxing them. In essence, they take 10% off of the paycheck and pay back during tax season. So it’s not really an added tax but it sure is going to feel like it when you get your paycheck. To many 10% may not seem like much but think of it this way – If you are making $3,000 a month you are now zipped an extra $300 each month on top of the taxes you already pay. Well, this extra 10% isn’t really tax as the government is simply borrowing from your pocket, but you sure are going to feel the pinch. And the fact that this took effect starting Sunday means people are going to be even cash striped during the holiday season.

The money that California is borrowing is similar to an interest free loan. You are borrowing the money to them but you aren’t getting paid any interest on it. In April when you file for taxes, if you owe money you will end up paying less since you have been already paying 10% more each paycheck than you normally would. If you are getting a tax return then you will get the money you loaned back when you get your tax return. Well, I for one don’t have any plans to move to California. And for anyone looking for jobs at the moment, it seems like your unemployment benefits are already higher than what you would bring home having a job. It’s a tough choice .

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