Last year I posted about the 58% jump in the California State Disability Insurance payroll tax, and how that increase had come on the top of a 120% jump over the previous three years.
Comes 2005 and the SDI tax rate declines from 1.18% to 1.08%. Doubleplus good news, no? Well, maybe. Problem is, the cap on the tax has increased from $68,829 to $79,418, an increase of over $10,000. Last year someone making $80,000 paid $812, now they pay $857, even though the rate has dropped.
Five years ago, the maximum was $231 on a $46,327 cap. A nuisance tax has now become a real tax, and the increase is larger than the old auto registration tax ever was.
As before, see here and here.