Skip to comments.California Controller To Suspend Tax Refunds, Welfare Checks, Student Grants
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 ...
Wow. I’ve been proven wrong. They will suspend welfare after all.
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.
Good reason as any to make sure you write a small check on tax day.....
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.
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.
Read this in the paper this a.m. Need this at the national level.
Says cash grants only.If the checks don’t make it to the ghetto on time all hell would break loose.
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?
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!
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.
Don’t pay state income tax
I wonder how Robert Ringer is feeling now that his words on government have been proven true in the most visible way.
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.
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!
How is suspending tax refunds not theft? And, shouldn’t they be required to pay interest as well?
Oh Crap, now they will be coming to Arizona!