U.S. to Tax State Rebates
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From United Press International
Despite pleas from state officials, the Internal Revenue Service insisted today that a huge chunk of California’s $1.1-billion tax refund will be subject to federal taxes.
The decision, after a month of wrangling between state and federal authorities and a midday meeting in Los Angeles, eventually will take a $167-million bite out of the refund checks to 5 million Californians. The refunds will average $94 per taxpayer. They are expected to be in the mail starting early next month.
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