Californians’ tax relief could be short-lived

(From the latimes.com) The New Year is set to bring some financial cheer to roughly 11 million Californians in the form of lower state income taxes and fatter paychecks, but some in Sacramento are considering ways to roll back the tax relief, calling it unaffordable for a state staring at a $28-billion deficit.

Legislators and Gov. Arnold Schwarzenegger enacted short-term tax hikes on income, sales and vehicles as California struggled to pay its bills in early 2009. The income taxes will be the first to expire, on Jan. 1. The others come off the books at the end of June.

Parents, and those with dependents, would reap the biggest rewards: roughly $210 in credits per dependent will be restored. A single taxpayer earning $40,000 will owe $91 less in state income taxes in 2011 than in 2010 — amounting to about two gourmet cafe lattes a month.

Read more here: Californians’ tax relief could be short-lived

http://www.latimes.com/news/local/la-me-state-taxes-20101230,0,6215508.story