Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California Controller To Suspend Tax Refunds, Welfare Checks, Student Grants
LA Times ^ | January 17, 2009

Posted on 01/17/2009 11:47:57 AM PST by Steelfish

California controller to suspend tax refunds, welfare checks, student grants John Chiang announces that his office will suspend $3.7 billion in payments owed to Californians starting Feb. 1, because with no budget in place the state lacks sufficient cash to pay its bills.

By Evan Halper and Patrick McGreevy January 17, 2009 Reporting from Sacramento --

The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, Controller John Chiang announced Friday. Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state's nearly $42-billion budget deficit. More than half of those payments are tax refunds. John Chiang In San Diego, financial free fall -- and... California to delay some payments Southern California officials draw up wish lists for federal stimulus money

The controller said the suspended payments could be rolled into IOUs if California still lacks sufficient cash to pay its bills come March or April. "It pains me to pull this trigger," Chiang said at a news conference in his office. "But it is an action that is critically necessary."

The payments to be frozen include nearly $2 billion in tax refunds; $300 million in cash grants for needy families and the elderly, blind and disabled; and $13 million in grants for college students.

(Excerpt) Read more at latimes.com ...


TOPICS: News/Current Events
KEYWORDS: california; fraud; policestate
Navigation: use the links below to view more comments.
first 1-5051-71 next last

1 posted on 01/17/2009 11:47:57 AM PST by Steelfish
[ Post Reply | Private Reply | View Replies]

To: Steelfish

Bankruptcy anyone?


2 posted on 01/17/2009 11:49:15 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Wow. I’ve been proven wrong. They will suspend welfare after all.


3 posted on 01/17/2009 11:52:35 AM PST by TheZMan (Secede.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

The message is clear to Californians. Do not overpay your taxes. You become an unsecured creditor, probably last in line for reimbursement. I suggest that California suspend all refundable tax credits (welfare) and return all tax overpayments.


4 posted on 01/17/2009 11:54:36 AM PST by businessprofessor
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Good reason as any to make sure you write a small check on tax day.....


5 posted on 01/17/2009 11:54:58 AM PST by EVO X
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheZMan
They will suspend welfare after all.

They could've chosen any basket of payments to delay. The ones they used are the ones that will set a fire under the legislature to get a budget, (no matter how bad), passed.

6 posted on 01/17/2009 11:57:30 AM PST by Glenn (Free Venezuela!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Steelfish

This idiot was elected to bring the budget under control, but instead wanted to promote embryonic stem research and attack global warming.

We should never elect anyone who lived a life of big, easy money.


7 posted on 01/17/2009 11:57:40 AM PST by broncobilly
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Read this in the paper this a.m. Need this at the national level.


8 posted on 01/17/2009 11:57:45 AM PST by lilylangtree (Veni, Vidi, Vici)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheZMan

Says cash grants only.If the checks don’t make it to the ghetto on time all hell would break loose.


9 posted on 01/17/2009 12:00:46 PM PST by Farmer Dean (168 grains of instant conflict resolution)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Steelfish
NO WELFARE CHECKS!!! Image and video hosting by TinyPic ...;0)
10 posted on 01/17/2009 12:00:55 PM PST by 1COUNTER-MORTER-68 (THROWING ANOTHER BULLET-RIDDLED TV IN THE PILE OUT BACK~~~~~)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

In the real world this is known as insolvency.

I wonder if a taxpayer who is denied a refund can now force the State into bankruptcy?


11 posted on 01/17/2009 12:01:15 PM PST by kaehurowing
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish
More than half of those payments are tax refunds.

This is the crap about it. The taxpayers are the ones pulling the wagon. Why should they not receive their own money when it is due? Does this mean they can suspend their tax payments until a budget is passed? Let the freeloaders do without and let them do without the longest. But do not infringe upon the free people who actually work for a living. California is acting like a monarchy.
12 posted on 01/17/2009 12:01:41 PM PST by AD from SpringBay (We deserve the government we allow.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AD from SpringBay

Why? Pressure on the taxpayers to put pressure on the legislature, which will then increase taxes, which releases payments to the taxpayers, and EVERYONE IS HAPPY!


13 posted on 01/17/2009 12:05:43 PM PST by SnarlinCubBear (Get Sarcasma - Comforting relief from the use of irony, mocking and conveying contempt)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Black Birch

Exactly. Refunds are a scam. You’re giving the government an interest-free loan. Better just to figure out what your deductions are going to be for the year, and snail-mail the IRS a check one minute before midnight 04/15.


14 posted on 01/17/2009 12:06:01 PM PST by Extremely Extreme Extremist
[ Post Reply | Private Reply | To 5 | View Replies]

To: AD from SpringBay

Don’t pay state income tax


15 posted on 01/17/2009 12:06:45 PM PST by mefistofelerevised
[ Post Reply | Private Reply | To 12 | View Replies]

To: Steelfish

I wonder how Robert Ringer is feeling now that his words on government have been proven true in the most visible way.


16 posted on 01/17/2009 12:06:56 PM PST by RWB Patriot ("Let 'em learn the hard way, 'cause teaching them is more trouble than they're worth,")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Fine, stop my tax refund. Hold it as long as you wish, but I demand the same interest and penalties that the state would charge me if I withheld funds due to it. Some tax group should form a class action suit against the state, and force it to abide by it’s own rules. If it can live with charging us loan sharking rates, I can live with charging it loan sharking rates.


17 posted on 01/17/2009 12:07:30 PM PST by DoughtyOne (I see that Kenya's favorite son has a new weekly Saturday morning radio show.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

So they owe nearly $4 billion in payments that they’ll suspend, yet they’ve increased their budget $8 billion from the last year. Idiots! Just trim the budget! Stop throwing away my money!


18 posted on 01/17/2009 12:08:36 PM PST by roadcat
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

How is suspending tax refunds not theft? And, shouldn’t they be required to pay interest as well?


19 posted on 01/17/2009 12:10:42 PM PST by Yogafist
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish
California controller to suspend tax refunds, welfare checks, student grants...

Oh Crap, now they will be coming to Arizona!

20 posted on 01/17/2009 12:13:46 PM PST by Cowboy Bob (Barack Obama: The Bernie Madoff of Politics)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cowboy Bob
”Oh Crap, now they will be coming to Arizona!"

Yeap, and bringing all their deeply held beliefs with them; the same beliefs that coincidently destroyed their current host state. BORG invasion; & resistance of course, is futile.

21 posted on 01/17/2009 12:27:15 PM PST by ArchAngel1983 (Arch Angel- on guard)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Steelfish
California controller to suspend tax refunds

Theft, pure and simple.

22 posted on 01/17/2009 12:29:13 PM PST by Poison Pill (Help, I've voted Republican and I can't get up!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

There was some talk recently of not paying the legislators until a budget was passed. Good idea, but since the legislators control this type of action, it’ll never fly.


23 posted on 01/17/2009 12:30:12 PM PST by Fast Moving Angel (There are no points for second place.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

I missed the part in the article where the state legislature and state senior officials are going without their paychecks (he said sarcastically)


24 posted on 01/17/2009 12:31:14 PM PST by jgilbert63
[ Post Reply | Private Reply | To 1 | View Replies]

To: kaehurowing
I wonder if a taxpayer who is denied a refund can now force the State into bankruptcy?

I was wondering the same.

25 posted on 01/17/2009 12:31:26 PM PST by Poison Pill (Help, I've voted Republican and I can't get up!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Glenn

Exactly right. No one wants the blind and elderly to suffer. Unfortunately they get lumped in with the tens of thousands of disability fakers.


26 posted on 01/17/2009 12:35:51 PM PST by informavoracious
[ Post Reply | Private Reply | To 6 | View Replies]

To: Steelfish

Suspend welfare checks? Oakland should be fun to watch!


27 posted on 01/17/2009 12:37:05 PM PST by Oldpuppymax (AGENDA OF THE LEFT EXPOSED)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RWB Patriot

Which book? - if you would help my memory - I read three of them, and cannot seem to recall that point. Did I miss a book?


28 posted on 01/17/2009 12:44:39 PM PST by ASOC (This space could be employed, if I could only get a bailout...)
[ Post Reply | Private Reply | To 16 | View Replies]

To: broncobilly

Reason 263 why i like Sarah. She isn’t from an easy life, big money background.


29 posted on 01/17/2009 12:45:44 PM PST by DesertRhino (Dogs earn the title of "man's best friend", Muslims hate dogs,,add that up.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Oldpuppymax
Suspend welfare checks? Oakland should be fun to watch!

There are going to be riots, and not just in Oakland. God help us, is all I can say.

30 posted on 01/17/2009 12:46:55 PM PST by Nea Wood (Silly liberal . . . paychecks are for workers!)
[ Post Reply | Private Reply | To 27 | View Replies]

To: DoughtyOne

Never set your witholding so high the the gubmit owes you money when due. They have enough of your dough as it is.


31 posted on 01/17/2009 12:47:24 PM PST by AU72
[ Post Reply | Private Reply | To 17 | View Replies]

To: TheZMan

Yeah, that surprised me. Since when do RATS not pay non-workers?


32 posted on 01/17/2009 12:49:36 PM PST by IllumiNaughtyByNature (TBD)
[ Post Reply | Private Reply | To 3 | View Replies]

To: All

"Ach der lieber.....Kaleefurrneeah bankrupt? Duz dat mean
I gotda chainch my plans abat runnin for prezeedunt?"

" Chonny and Wooty, you two RINOS bettah make udder plans.
Ai gotda vunny veeling dah Reepublucan Potty tinks RINOS are pure crapola."

" Ai hear RINOS kin get jobs as Val-Mart greeters, Home Depot paint mixers
unt McD's ketchop pumpers, or vaiters at Ved Lopstah."

"Ai kiss anyboty's tookus to gets dah money to bailout Kaleefurnia. Mebee Ai
trow Maria off dah ski livt at Sun Valley. Ai getda nashynal symputty ven
anodder Kennedee goes kaput."

33 posted on 01/17/2009 12:52:41 PM PST by Liz (The right to be left alone is the beginning of freedom. USSC Justice William O. Douglas)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AD from SpringBay
California is acting like a monarchy.

Complete with "forced loans" to the crown.

34 posted on 01/17/2009 12:57:57 PM PST by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
[ Post Reply | Private Reply | To 12 | View Replies]

To: Steelfish
One of my former co-workers and her husband moved to the Left coast about 5 years ago... they threw in the towel and came back here to the great state of Tejas (ooops, Texas)... much more business friendly environment (my current employer moved much of their northern Cali. operations here in '03).

Another thing... no state income tax is a very good thang... God blessed the Lone Star State ;-)

35 posted on 01/17/2009 1:01:28 PM PST by Trajan88 (www.bullittclub.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: broncobilly
We should never elect anyone who lived a life of big, easy money.

I tend to agree, although George W. Bush was raised wealthy (or maybe that makes your point, depending on how you view "W"). I would also point out that Arnold's father was a policeman in Austria who always told his son that he would never amount to anything, that his brother was the one who would make something of himself (can you name Arnold's brother? I can't).

Nobody gave Arnold anything. He came to America a broke immigrant, and literally worked his ass off to become Mr. Olympia, the highest title in professional body building, seven times.

Which leads me (and perhaps you) to wonder - WTF anyone who had to work hard for everything he ever got (until of course he married Maria Shriver), be a LIBERAL?!?!? That's the piece of the puzzle that doesn't make any sense to me.

36 posted on 01/17/2009 1:02:57 PM PST by Hardastarboard (Why do I find the Toyota "Saved by Zero" ads so ironic?)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steelfish
Suspending welfare checks = riots in the streets. And, riots in a single city can become nationwide (at least this is what recently happened in Greece).

This is a ploy to force a federal bailout - but I would like to see it come about. Ending welfare would be like throwing up - it's bothersome when you do it, but you feel so much better afterwards.

37 posted on 01/17/2009 1:04:36 PM PST by The Duke (I have met the enemy, and he is named 'Apathy'!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Let the riots begin. And I can’t think of a more deserving “”liberal utopia”” for it to start things off in.

Welcome to the “hope and change” of an Obamanation.


38 posted on 01/17/2009 1:14:03 PM PST by XenaLee
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist
and snail-mail the IRS a check one minute before midnight 04/15.

I snail mail mine around April fools day..

39 posted on 01/17/2009 1:24:02 PM PST by EVO X
[ Post Reply | Private Reply | To 14 | View Replies]

To: Liz
"Ai kiss anyboty's tookus to gets dah money to bailout Kaleefurnia. Mebee Ai trow Maria off dah ski livt at Sun Valley. Ai getda nashynal symputty ven anodder Kennedee goes kaput."

LOL!

40 posted on 01/17/2009 1:30:15 PM PST by Sir Francis Dashwood (Arjuna, why have you have dropped your bow???)
[ Post Reply | Private Reply | To 33 | View Replies]

To: The Duke

They know this will put pressure on Washington to give them a bail out. I can not believe people are foolish enough to believe CA is going to suspend welfare for any significant length of time.


41 posted on 01/17/2009 1:30:19 PM PST by Kid Shelleen (Barack the Messiah: Never in the field of US politics have so many waited so long for so little.)
[ Post Reply | Private Reply | To 37 | View Replies]

To: TheZMan
They will suspend welfare after all.

We'll see if it happens. Just imagine the riots if they do suspend welfare checks.

42 posted on 01/17/2009 1:30:58 PM PST by ladyjane
[ Post Reply | Private Reply | To 3 | View Replies]

To: ASOC

“Looking out For #1”

He points out that the government often does things that would get you or I thrown in jail. Well, if anyone needed a crystal-clear example, the government of California refusing to pay its debts is the best I’ve seen.


43 posted on 01/17/2009 1:35:01 PM PST by RWB Patriot ("Let 'em learn the hard way, 'cause teaching them is more trouble than they're worth,")
[ Post Reply | Private Reply | To 28 | View Replies]

To: DoughtyOne

A class action suit is a great idea.

They should pay interest and penalties at the same rate they charge us when we are late.

Also, they need to allow all businesses to suspend deducting California income tax from paychecks until each employee has had the $ amount suspended that he should have been refunded.

Nice bookkeeping nightmare for the state, huh?


44 posted on 01/17/2009 1:35:11 PM PST by Syncro (Ti Ming)
[ Post Reply | Private Reply | To 17 | View Replies]

To: Steelfish

Is a state note money? can you take it to a bank and swap it for cash like the days when states issued notes that were money?


45 posted on 01/17/2009 1:38:55 PM PST by bert (K.E. N.P. +12 . The original point of America was not to be Europe)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

If I get an IOU can I file Chapter 7 bankruptcy against the state?


46 posted on 01/17/2009 1:40:02 PM PST by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish
The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1...

The tax refunds is the biggest mistake. Paying back the refunds would amount to a stimulus check, in that the people will put that money back into the economy. The kicker here is that the tax refunds go back to the people who overpaid them.

The welfare checks and student grants are wealth redistribution, and should be suspended first. The welfare checks would likely be spent at local businesses and/or utilities, but the student grants will just go back to the state as college tuition in the UC and Cal State systems.

-PJ

47 posted on 01/17/2009 1:40:48 PM PST by Political Junkie Too (You can never overestimate the Democrats' ability to overplay their hand.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish
The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1,

it might put a dent in immigration

48 posted on 01/17/2009 1:41:23 PM PST by alrea
[ Post Reply | Private Reply | To 1 | View Replies]

To: informavoracious

“No one wants the blind and elderly to suffer.”

Speak for yourself!

BTW, i’m 71.


49 posted on 01/17/2009 1:45:59 PM PST by dalereed
[ Post Reply | Private Reply | To 26 | View Replies]

To: Poison Pill

Agreed...and so will each taxpayer who gets an “IOU” instead of a refund. If California thinks it has cash flow problems now, just wait until a majority of those due refunds this year make sure that they won’t be owed one in future years!


50 posted on 01/17/2009 1:47:28 PM PST by Reagan80 ("Government is not the solution to our problem, Government IS the problem." -RR; 1980 Inaugural)
[ Post Reply | Private Reply | To 22 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-71 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson