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Calif. Taxpayers Due Refunds May Get IOUs
MSNBC ^ | 12/31/08 | Patrick Healy

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 ...


TOPICS: Business/Economy; Front Page News; News/Current Events; US: California
KEYWORDS: budgetcrisis; california; iou; mexifornia; taxes; taxreturn
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Here we have another criteria for determining if you live in a blue state:

Your tax refund will be paid with IOU's.

1 posted on 12/31/2008 7:41:31 PM PST by TigerLikesRooster
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To: TigerLikesRooster; PAR35; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...

Ping!


2 posted on 12/31/2008 7:41:54 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

In that case, can I pay my state tax withholdings with an IOU?


3 posted on 12/31/2008 7:43:50 PM PST by ZirconEncrustedTweezers (Some people like cupcakes better. I, for one, care less for them.)
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To: TigerLikesRooster

OMGGGG that so wrongggg so many levels

My state is jack up Tiger


4 posted on 12/31/2008 7:45:33 PM PST by SevenofNine ("We are Freepers, all your media belong to us, resistence is futile")
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To: TigerLikesRooster

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.


5 posted on 12/31/2008 7:47:12 PM PST by cripplecreek (The poor bastards have us surrounded.)
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To: SevenofNine
Look for the bright side.
You may pay your next property tax with IOU’s.:-)
6 posted on 12/31/2008 7:47:40 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

OH dear I never thought of that


7 posted on 12/31/2008 7:48:02 PM PST by SevenofNine ("We are Freepers, all your media belong to us, resistence is futile")
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To: ZirconEncrustedTweezers

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.


8 posted on 12/31/2008 7:51:07 PM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: TigerLikesRooster
We're working our way to where you give the state 6 months free labor for the state's benevolence, protection and guidance.

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.

9 posted on 12/31/2008 7:52:34 PM PST by Leisler
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To: coloradan

(So my memory may be faulty.)


10 posted on 12/31/2008 7:52:51 PM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: TigerLikesRooster
so can the poor bastards send in their IOU to their credit card company to pay off their Christmas shopping???

didn't think so...

11 posted on 12/31/2008 7:53:42 PM PST by Chode (American Hedonist -)
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To: ZirconEncrustedTweezers

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.


12 posted on 12/31/2008 7:54:32 PM PST by buwaya
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To: TigerLikesRooster

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!


13 posted on 12/31/2008 7:54:49 PM PST by chris_bdba
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To: TigerLikesRooster
Your tax refund will be paid with IOU's.

Most importantly, the 40% of people that pay nothing.....will get nothing, for the first time.

Let the riots begin.....

14 posted on 12/31/2008 7:55:15 PM PST by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: TigerLikesRooster

Yep !

Debt swaps should be possible.


15 posted on 12/31/2008 7:55:31 PM PST by buwaya
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To: TigerLikesRooster

Isn’t there something in the Constitution about states emitting “Bills of Credit”?


16 posted on 12/31/2008 7:56:29 PM PST by ikka (Brother, you asked for it!)
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To: calcowgirl; Liz

fyi


17 posted on 12/31/2008 7:56:39 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: TigerLikesRooster

CA must be counting on the Magic Negro to bailout the Golden State.


18 posted on 12/31/2008 7:57:47 PM PST by yongin (Converting people to Mormonism makes the world more conservative)
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To: buwaya
t would be difficult to arrange for withholding,

Can't you just claim more exemptions on your W4?

19 posted on 12/31/2008 7:59:03 PM PST by Overtaxed
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To: ZirconEncrustedTweezers

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?


20 posted on 12/31/2008 7:59:56 PM PST by bannie (i)
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