A reader responded to my question about whether the state of California really had the ability to start withholding an extra 10 percent from taxpayers’ paychecks just bcause it’s broke:
This is a gray area, and if the right paintiff emerges (probably a large private-sector union local) then it could go to the U.S. Supreme Court. My guess is that there are plenty of justices who would not be readily convinced regarding the coincidence of a state cash-flow crisis and the “discovery” of a need to boost a formula developed to be reasonably related to what taxpayers should owe.
Thank you.