California Independent Contractors Standing By

When I received information that the state legislature was considering a 3% withholding from independent contractors I thought I would do just a bit of research. California Independent Contractors please stand by for $.13 increase in your gas taxes on top of the 3% withholding provision. How about a 2.5% surcharge on your personal income taxes or an increase in sales taxes. All this and more is coming to your California town in 09′ if the Dems have their way.

Of course the state will use your 3% as a money making tool. They will invest it and earn interest on it until you file your tax return then,  if you are due a refund the next year they will gladly return that portion due. I suspect they learned it from the banks. After all, you give the bank your money each time you deposit it into your checking or savings account. Whether it’s overnight or weeks or months, the bank invests your money, earns much more interest than they are paying you. When you write a check or make a withdrawal they give you your money. They may say “Thanks for stopping in” but what they really mean is “thanks for the free money.”

We all need banks. They are an integral part of our lives and our economy. Wouldn’t it be great if you could employ some of the same methods used by the banks, corporate America and apparently, state governments. Well you can!

Let’s get back to independent contractors and the proposed 3% withholding proposal. Remember a few years ago when the Seller of a  non-owner occupied property over $100,000 had to release 3% to the state? As far as I know that program is still in effect. If a “new rule” is a money maker, it seems to never go away.

We need to prepare for this. This may mean moving out of state I don’t know. Other states have their own problems no doubt. In any case the “light at the end of the tunnel” truly is a train, a budget train headed straight for us all. There is a way to put some distance between you and the train. There is a way to position yourself for this and the next unstable economy. Let’s check it out together.

1. 

   Recreational Vehicle says:

   February 11, 2009 at 2:56 pm

   it goes to show you, Added a subscription to your RSS feed. This is a post to check and return to, bookmarked.
2. 

   AssumnMup says:

   February 5, 2009 at 6:52 pm

   Your site displays incorrectly in Mozilla, but content excellent! Thanks for your wise words =)
3. 

   Mike Harmon says:

   December 27, 2008 at 4:16 pm

   A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks
4. 

   Stacey Derbinshire says:

   December 27, 2008 at 3:45 pm

   I must say this is a great article i enjoyed reading it keep the good work