Orwellian Democrat Double-Speak: A Tax is Not a Tax

This is just Nancy, the Botox Bolshevik, Pelosi in another form.  She said that raising taxes wasn’t a “tax increase.”  She said it was just eliminating a tax cut that had been put in place.  George Orwell was right, he was just 20 years too early.  Now you have the state of California playing another shell game with taxpayer money.  They are increasing the withholding by 10% and saying that it is not a tax increase.

Here’s where the “tax experts” are lying to you.  The difference is what you could do or the interest you could earn with that money if you had it over that period of time instead of the government.  The government will not compensate you for the lost earning potential of that money for the time they withhold it from you.  They are depriving you of the opportunity to make a given amount of money, and that amounts to a tax.  They call it a “cash advance.”  Every place I know of that will give you a cash advance calls it a loan and charges you interest.  Are the taxpayers going to be able to charge the government interest on this “cash advance?”  When pigs fly.

Could this practice spread to other states?  I’d be surprised if it didn’t.


http://www.sacbee.com/politics/v-print/story/2295363.html

State’s tax withholding bump-up starts today

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.

Essentially, the accelerated withholding program does not generate additional tax revenue. Instead, it front-loads it, bringing cash in more quickly in an effort to keep the state treasury stocked with funds, which is where the “cash advance” tag comes in.

State officials have estimated that the move will generate an additional $1.7 billion in the current fiscal year.

(Read complete article HERE)


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