Posted on 12/31/2008 7:41:30 PM PST by TigerLikesRooster
Calif. Taxpayers Due Refunds May Get IOUs
By Patrick Healy
NBCBayArea.com
updated 8:46 p.m. ET Dec. 31, 2008
If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU.
California is rapidly running out of money. Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves. Facing inadequate credit to make up the difference, California's Controller John Chiang warns that by the end of February, the nation's most populous state may not be able to pay some of its debts, and instead be reduced to issuing those creditors IOUs.
"My office has projected that, in approximately 60 days, there will be insufficient cash available to meet all expenditures reflected in the 2008-09 Budget Act," stated a Tuesday letter from Controller Chiang to the directors of all state agencies. "To ensure that the State can meet its obligations to schools, debt service, and others entitled to payment under the State Constitution, federal law, or court order. California may begin, as early as February 1, 2009, issuing registered warrants...commonly referred to as IOUs...to individuals and entities in lieu of regular payments."
(Excerpt) Read more at msnbc.msn.com ...
Your tax refund will be paid with IOU's.
Ping!
In that case, can I pay my state tax withholdings with an IOU?
OMGGGG that so wrongggg so many levels
My state is jack up Tiger
Not like they would ever consider simply cutting the owed person’s taxes by the same ammount. It ain’t perfect but it beats an IOU slap in the face.
OH dear I never thought of that
People tried that the last time Kali needed to pay in IOUs, and what I recall is that the state didn’t accept them. But that was a long time ago.
Years further out, you will be allowed to sell your land for a pitance and then give the state 11 months free labor in return for being allowed to live on the states land, and some basic foodstuffs, nails, rough cloth and rabbit meat on holidays.
And, thus, Americans sold themselves, and their children into neo-serfdom.
(So my memory may be faulty.)
didn't think so...
Actually, I think a “registered warrant” can be used to pay tax obligations. It would be difficult to arrange for withholding, but if you are a business or self-employed making quarterly payments, this may work.
I’m sorry but as long as the state is issuing welfare checks then the refunds need to come before those do! Afterall they are the people who pay for those checks to be issued! If I were in CA right now I’d be upping my dependants until I owed about $100 a year to the state!
Most importantly, the 40% of people that pay nothing.....will get nothing, for the first time.
Let the riots begin.....
Yep !
Debt swaps should be possible.
Isn’t there something in the Constitution about states emitting “Bills of Credit”?
fyi
CA must be counting on the Magic Negro to bailout the Golden State.
Can't you just claim more exemptions on your W4?
That’s what it all means to me.
Monololy money might work, too. If they can make up the rules as we go along, can’t we do the same?
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