How Quick Loans Figure into California Budget

Governor signed budget, now what?

Friday, Arnold Schwarzenegger signed California’s much-debated budget, which includes quick loans, hefty tax increases and deep spending cuts. So what’s next?

The tax man cometh

New income taxes, sales taxes and vehicle license tax will kick in on April 1, according to the Los Angeles Times. The dependent tax credit will be reduced, which will apply when Californians do their 2009 tax returns.

Switcheroo

Strangely, about seven weeks after the tax increases go into effect, California voters will get a chance to approve or deny them.  Voters must agree pay the tax increases for the next two years. Well, the next one year and 10 months or so.

Banking on the lottery

On May 19, the same day they vote on the tax increases, voters will weigh in on all ballot measures related to the budget. This is where the quick loans come in.
In addition to the tax increases, Californians will vote on whether to borrow $5 million against future lottery proceedings. That way the state can spend future lottery purchases now.

How much?
Sales tax will go up by 1 cent on the dollar. Obviously, how much this tax costs individuals depends on how much money they spend. The vehicle license fee will double, bringing the total fee to 1.15 percent of the car’s value.

Income tax will go up 0.25 percent. For those on the lower end of the income scale, this will cost about $53 per year. For those making $1 million or more who have two dependents, it will cost about $2,250. The dependent tax credit will be reduced by $210 for everyone. ... click here to read the rest of the article titled "How Quick Loans Figure into California Budget"