Calif. Taxpayers Due Refunds May Get IOUs

MSNBC ^ | 12/31/08 | Patrick Healy

[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."

[ex-Texan]

California and new York are almost BK. Everybody knows it. I warned about the toxic mess in California many times. I even told all here that Calif was almost bankrupt last month and a few months prior to that. This 'news report' is not really news . . .

No big deal. Nothing to see here. Time to move on.

But BIGGER NEWS is coming. This is exclusive report from Bloomberg is just the start:

Journal of a Plague Year: Faith in Markets Cracks Under Losses

$ 30 or $ 40 Trillion in market losses have been wiped out thus far. 2008 was a record year.

Happy New Year !

[maine-iac7]

But the taxpayers, of course, will be able to bill for penalties and interest at the same exorbitant rate the gov’t charges on delinquent payments. s/

[Lancey Howard]

LMAO

Flee.
Just flee.

[maine-iac7]

If I were in CA right now I’d be upping my dependants until I owed about $100 a year to the state!

If I were in CA right now, I'd be asking myself: "What the he*l are you doing here?"

I got outta there 29 years ago. It was a he*l hole then. I just packed up the kids and everything I could get in a UHaul and headed back east. Never regretted it.

[ToastedHead]

“It still retains a quaint level of historical interest along with that other discredited screed, the bible.”

LOL, I like your style.

[Deetes]

The 50 trillion dollar bailout .

[Lmo56]

But the taxpayers, of course, will be able to bill for penalties and interest at the same exorbitant rate the gov’t charges on delinquent payments. s/

***

We should require Cali to purchase Credit Debt Swaps just in case they default on the IOUs ...

I hear that AIG is looking for new business ...

[Freedom_Is_Not_Free]

I’m a civil engineer with the state of California. I work at Caltrans.

Yes, we are taking an immediate 10% pay cut.

We are not taking layoffs but other agencies are. We aren’t taking layoffs because the governor wants us to accelerate highway construction projects to create more construction jobs.

I haven’t heard that my future pension is being reduced and I would be upset if that were the case. A nice pension is what I agreed to in exchange to being under-paid by 30-40% throught my 25-year career, relative to other PUBLIC SECTOR employees (cities and counties), let alone private sector engineers, who get bonuses on top of their salaries and matching retirement funds.

[PA-RIVER]

So what new programs are Arnie and Maria starting with the new found money from your salary?

I guess they’ll think of something. Uncle Teddy probably has some good ideas.

[wac3rd]

I guess there is no impact of 2-4 million illegals.

We pay for useless state workers and billions for illegal benefits...all while killing business with unions and enviro-wacko laws.

[P-Marlowe]

For many years I used my California refund to pay the shortage on my federal tax. Do you think the IRS will take an IOU from CA?

[cookcounty]

"Look for the bright side. You may pay your next property tax with IOU’s.:-)"

Just endorse the back and send it in!!

[NTHockey]

>>If I were in CA right now I’d be upping my dependants until I owed about $100 a year to the state!<<

Not a bad idea for ALL of us - federal AND state. Don’t forget to count your home interest as equivalent dependants.

[RU88]

Can I use my IOU to pay my taxes? I'll gladly give you two cheeseburgers tomorrow for a cheeseburger today.

[2harddrive]

But, in America overall, the balance has TIPPED. They outnumber us! More people GET money from the fed.gov than pay taxes in to it! All is lost!

[RLM]

When I endorsed my stimulus check over to the IRS to pay my estimated tax, the IRS would not accept the check.

[sergeantdave]

Not the only state. The thieving socialist/welfare state of Michigan refuses to return taxes I overpaid.

Now I’m getting the runaround from the bureaucrat pigs at revenue that the forms I submitted to get money back aren’t filled out right, which is a lie, and it will take four months to process the wrong papers before I can submit another set of papers, which will take four months to process.

We no longer have government in this country but instead a criminal fascist syndicate.

When a form of government becomes illegitimate...

[Gritty]

... here is the worthless reference, with emphasis added, from Article I, Section 10.

How Quaint!

[OCCASparky]

Just one more reason I’m glad I got out of that socialist cesspool when I did.