California’s tax brackets are indexed for inflation. Normally, the marginal tax brackets go up each year. But 2009 is anything but a normal year.
The Franchise Tax Board announced the new brackets, and deflation is the name of the game. Tax brackets will fall, and that means if your income is the same in 2009 as 2008, the amount you will pay to California just went up. And that’s besides the tax increase that came in February by bad budget #1.
Don’t worry, Democrats in the state legislature haven’t given up trying to pass even more tax increases.
I’ll have a lengthy post about 2009 California tax brackets and related items in a couple of weeks.