Calculate personal tax impact of proposed budget

By Phillip Reese
preese@sacbee.com
Published: Tuesday, Feb. 17, 2009
The legislature is locked in difficult negotiations, just one vote shy of passing a new budget. Their ultimate decision will likely affect nearly all aspects of state government -- and the pockets of taxpayers.

A family of four, for instance, could pay around $1,200 in new taxes if the proposed budget is passed.

Use this calculator to see how the proposed budget could affect your household. Click on a new cell or hit the calculate button when done and the totals will change. May take a moment to load. Do not type dollar sign.


TAX CALCULATOR

Assumptions: Calculations based on Assembly Floor Report given to legislators Saturday night. Assumes $22.13 of every $1,000 in personal income will be spent on sales taxes, up from current rate of $19.45 per $1,000. (Sales tax assumption based on figures here, but adjusted based on interviews with state finance officials noting that about 35 percent of sales tax revenue is generated by business-to-business transactions.) Assumes 5 percent income tax surcharge. Assumes taxpayer takes standard tax deduction. Assumes vehicle license fee increases from .65 percent to 1.15 percent of car's value. Assumes gas tax increases by 12 cents per gallon. Assumes each dependent tax credit reduced by $210.

Notes: The 5 percent surcharge on income tax liability will be halved to 2.5 percent if sufficient bailout money comes to the state from the feds. The percentage of income that goes toward taxable items varies by income level -- the poor pay a higher percentage of their income on sales taxes than the wealthy, so their sales tax burden is often more than the number shown here.

For informational purposes only. Budget negotiations in flux.

ShareThis

http://www.sacbee.com/1098/story/1627728.html