Your paychecks are about to get fatter, and that's no April Fool's Day joke. The income tax cuts included in the economic stimulus plan passed by Congress in February kick in today.
The White House said today it should put $6.4 billion new dollars in the hands of California workers. Overall, 12.6 million families in California should cash in, the White House said.
The typical American family is expected to receive about $800 in extra cash, an attempt to jolt the economy.
The "Making Work Pay" included in the stimulus will phase out for taxpayers with adjusted gross income in excess of $150,000 for married couples filing jointly and $75,000 for other workers. It's part of President Barack Obama's promise to provide tax relief to roughly 95 percent of American working families. Nationally, the tax cut will affect more than 110 million families.
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The tax cut at the federal level will make it a little easier for Californians to pay higher state sales taxes. Beginning today, state residents will start feeling the impact of the February budget compromise struck by lawmakers and Gov. Arnold Schwarzenegger. The state sales tax will rise 1 cent on the dollar.