Monday, November 2, 2009

California Announces New Reverse Loan Program

Cash-strapped California has announced a new program by which citizens get the privilege of making an interest-free loan to the state equivalent to 10% of their current tax withholding. Gosh I wish I lived in a state that unilaterally gave itself the power to use your paycheck as a personal savings and loan.

As for the idea that citizens will be "repaid any extra withholding in April", I wouldn't hold my breath; this is the state that was issuing IOU's for tax return overages last April.


  1. Don't be shocked if you see this plan implimented on a Federal level within the next couple years.

  2. No way. Californians on balance seem to feel that no tax is a bad tax. They've come to believe that a nanny state is worth these sorts of money grabs.

    Minnesota might be okay with it too (at least in the twin cities if not the out-city areas) but there's be armed rebellion if the feds decided to give themselves interest-free loans from everyone's paychecks.

  3. I hope you're correct but it wouldn't surprise me to see such a plan pass the house and senate that "only affects those making over $250,000 per year."