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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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To: Leisler
We're working our way to where you give the state 6 months free labor I thought we were already there. What our "tax freedom" (ha ha ha) date now?
21 posted on 12/31/2008 8:02:06 PM PST by PistolPaknMama (Al-Queda can recruit on college campuses but the US military can't! --FReeper airborne)
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To: TigerLikesRooster

I wonder if the CA department of revenue would be willing to accept IOUs from tax payers?

Any takers? Bueller? Bueller?

I didn’t think so.

Mark


22 posted on 12/31/2008 8:03:41 PM PST by MarkL (Do I really look like a guy with a plan?)
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To: TigerLikesRooster
Your tax refund will be paid with IOU's.

Are they negotiable?

23 posted on 12/31/2008 8:09:28 PM PST by stevem
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To: ikka
Isn’t there something in the Constitution...

Please define the word in bold and explain what it means. I have vague memories of such a concept, but that was a long time ago. Does it have any application to the state of California?

24 posted on 12/31/2008 8:11:20 PM PST by 17th Miss Regt
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To: TigerLikesRooster
Same as NYC.

Aren't they getting the message???

It's frustrating people don't see who's causing the financial problems in this country.

25 posted on 12/31/2008 8:17:25 PM PST by rvoitier
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To: TigerLikesRooster

Well, they’ll succeed in screwing the taxpayers this year, no doubt, but the state will pay a penalty for this misbehavior in the long run.

As several have suggested, the obvious thing will be for people to increase the number of declared dependents for withholding taxes, and then if necessary send a quarterly check to the feds for estimated taxes so as not to get in trouble with Uncle Sam.

The state will lose the benefit of having that cash early without paying any interest on it.


26 posted on 12/31/2008 8:17:37 PM PST by Cicero (Marcus Tullius)
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To: TigerLikesRooster
Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves.

Right! Correctly, blame should fall on the fiscally irresponsible leftists that run the CA government, not on a nebulous "state budget deficit" that just seems to have magically materialized.

27 posted on 12/31/2008 8:17:38 PM PST by ProtectOurFreedom
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To: TigerLikesRooster
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 legislators inability to enact massive spending cuts.

Sorry, at least now it's truthful.

28 posted on 12/31/2008 8:18:14 PM PST by upchuck (Get ready for 2009: Pray; Raise/conserve cash; Pay your debts; Pray; Stockpile; Buy ammo; Pray)
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To: TigerLikesRooster

I thought liberals were happy to pay more taxes.


29 posted on 12/31/2008 8:21:30 PM PST by Clock King (Radical Conservatives, arise!)
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To: TigerLikesRooster

When they try and tax you next year send them back the IOU they sent and say ‘Paid in Full’.


30 posted on 12/31/2008 8:21:53 PM PST by Chewbacca (Buy gold and silver coins to profit from the comming dollar melt down!)
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To: ZirconEncrustedTweezers
In that case, can I pay my state tax withholdings with an IOU?

No problem, what are they going to do when most are broke anyway? lol

31 posted on 12/31/2008 8:23:08 PM PST by dragnet2
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To: Clock King

While I am amused by Mexifornia’s budget crisis, the sad part is many of their idiot voters will decide to move to states like Nevada and Arizona and proceed to screw them up, too.


32 posted on 12/31/2008 8:23:57 PM PST by Comparative Advantage
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To: Comparative Advantage
Try former East Germany's solution. Land mines, T-shaped barbed wire fence, machine gun nests along the state border with CA.:-)
33 posted on 12/31/2008 8:27:37 PM PST by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: Clock King

Mostly they’re happy to COLLECT more taxes.


34 posted on 12/31/2008 8:28:28 PM PST by ZirconEncrustedTweezers (Some people like cupcakes better. I, for one, care less for them.)
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To: TigerLikesRooster

This is awesome!

You’ll see a true taxpayer revolt when this happens.....

The “stick it to the rich guy” comes home to roost.....someone other than me syndrome....

They’ll be saying “Oops...now it is me....hang the politicians!!!!”

Cut gubernment spending by 1/3.....


35 posted on 12/31/2008 8:34:26 PM PST by nevergore ("It could be that the purpose of my life is simply to serve as a warning to others.")
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To: TigerLikesRooster

SUCKERS! You should have been UNDERWITHELD....then sent THEM the IOU!


36 posted on 12/31/2008 8:37:04 PM PST by 2harddrive (...House a TOTAL Loss.....)
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To: TigerLikesRooster

...And what interest will the state be paying to these financial warrant holders?


37 posted on 12/31/2008 8:39:53 PM PST by lainie (The US congress is full to the brim of absolutely disgusting thieves who deserve humiliating ouster.)
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from the article:

One final irony, Tobin sees: electronic deposit refunds are inexpensive to do. Instead sending out IOUs is a more costly procedure for a state looking to save money.

That's pretty sad, yo.

38 posted on 12/31/2008 8:40:43 PM PST by lainie (The US congress is full to the brim of absolutely disgusting thieves who deserve humiliating ouster.)
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To: PistolPaknMama

It is the same. They just let us work around the plantation, and then we give them the same slips of paper back, called dollars.

Previous slave/serf societies didn’t have printing presses. Now they do.


39 posted on 12/31/2008 8:47:12 PM PST by Leisler
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To: TigerLikesRooster

And yet, if you try to do the same thing to the state for money you owe, you get draconian penalties and interest tacked on.


40 posted on 12/31/2008 8:56:00 PM PST by IYAS9YAS (Hey Obama, why lawyer up when you can pony up? Show us your vault copy BC)
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To: TigerLikesRooster

Dumbasses. All this means now is everyone is going to under-withhold, making the crises even worse.


41 posted on 12/31/2008 8:57:23 PM PST by Ron Jeremy (sonic)
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To: TigerLikesRooster

You should be able to use it as an offset for future obligations owed the state. But I’m guessing that the state will disagree.


42 posted on 12/31/2008 8:58:20 PM PST by PAR35
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To: Clock King
I thought liberals were happy to pay more taxes.

Well, it is patriotic to pay more taxes - Joe Biden said so.

43 posted on 12/31/2008 9:00:31 PM PST by Graybeard58
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To: TigerLikesRooster
The largest, richest state in the Union running out of money and issuing IOUs?

Can we say "as California goes, so goes the USA"?

44 posted on 12/31/2008 9:09:41 PM PST by marshmallow ("A country which kills its own children has no future"- Mother Teresa of Calcutta)
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To: TigerLikesRooster

I wonder if someone who owes taxes to the FTB will be allowed to use an IOU?


45 posted on 12/31/2008 9:09:50 PM PST by Mojave (http://barackobamajokes.googlepages.com/obama_funny)
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To: TigerLikesRooster
I guess I can't use my state refund to pay my federal underage this year.

-PJ

46 posted on 12/31/2008 9:17:09 PM PST by Political Junkie Too (You can never overestimate the Democrats' ability to overplay their hand.)
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To: TigerLikesRooster

So would it be ok for me to pay my taxes to the state with an IOU??? (Probably not)


47 posted on 12/31/2008 9:17:20 PM PST by PERKY2004 (Proud Military Wife -- my husband is in his 26th year of military service!!! PRAY FOR OUR TROOPS!!!)
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To: TigerLikesRooster
TITLE: Calif. Taxpayers Due Refunds May Get IOUs

So, where will CA get the money to print the IOUs? Plus, USPS wants to be PAID for the postage.....

Got family members living in the Great state of California.

48 posted on 12/31/2008 9:18:00 PM PST by Buddy B (MSgt Retired-USAF - Year: 1972)
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To: 17th Miss Regt
There once was an archaic fixed document called the Constitution, which has zero relevance to any modern court of lawLiberalism. It still retains a quaint level of historical interest along with that other discredited screed, the bible. For the sake of the those who failed their original NEA programming, and until the Messiah arranges for their re-education, here is the worthless reference, with emphasis added, from Article I, Section 10.
No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

49 posted on 12/31/2008 9:18:42 PM PST by JohnBovenmyer
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To: All

They should stop paying state income taxes and send Arnie an IOU instead.


50 posted on 12/31/2008 9:22:41 PM PST by RasterMaster (DUmocrats - the party of slavery, sedition, subversion, socialism & surrender)
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