2009-01-05 18:18:22
California May Be Forced To Issue IOUs
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How would you feel if you checked your mail, expecting to find your state income-tax refund, but instead found an IOU from the state?
This is the situation that many Californians may find themselves facing in 2009.
Not only do Californians have to deal with a plummeting real estate market and uncertain job market, but now they might have to wait for their tax refunds?
This is one of the alternatives that is available to California if they can't close a growing budget gap. The state is running out of cash due to an inability to agree on a budget.
This wouldn't be the first time that this has happened in California. In 1992, the state government was unable to agree on a budget and many residents were issued IOUs instead of their income tax checks. It is expected that many more residents would be issued IOUs this time around.
California is apparently working on a design for these IOUs, but nothing has been finalized as of yet, as they are still hoping that they won't need to use them.
Interest would be paid on the IOUs, but an interest amount has not been determined as of yet either.
The state also points out that taxpayers will not be able to pay THEIR debt to the government with IOUs.
It will be interesting to see how this all plays out.
One thing is for sure - California is a complete mess right now.
Source: Contra Costa Time - This Year's State Income Tax Refund Could Be IOU
Filed under: The Economic Meltdown
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COMMENTS
Comment by growing greens on March 31, 2009 @ 12:54 pm
Just relax and roll one. open a cold one and kick back on a hammock. do something you love doing. breathe in, breathe out. take your kids to the park. play with your pets. read a book. enjoy life! Whatever happens to our economy and well being, we all a have our faith in the end. Life is like a garden, dig it!
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Comment by Blessed Lady on March 02, 2009 @ 9:38 pm
Cali is in a bad state. I don't have to depend on the governor, gold, silver or any thing like that, I have my the LORD. A lot of people are in a bad financial crisis because of greed. Yes, some people got taken by bad people too and believe me they won't get away with anything. I do believe and trust in the LORD I He promised to take care of his children and one of them I am. I'm doing great. My business is growing and doing better that ever. I have a lot of debt like everyone else, my credit isn't the best. Because of my GOD, I'm happy and peaceful in good times and bad, I have lived through them both. I'm not worrying about anything because what will be will be.
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Comment by Karla on March 02, 2009 @ 10:57 am
Bottom line finally is: unite and revolt
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Comment by anoymous on February 24, 2009 @ 1:26 pm
Is true about welfare I think if mexicans just come to U.S. for that check is wrong!! Im mexican and right now Im working part time I cant make it with the money that I make I have 2 kids with hearing lost but it never cross my mind to go and get welfare I do think is for need it people. In my mind is always I can survive I just leave it to need it people.I get mad when I see people that I see at my work paying with food stamps and getting out a bunch a money to pay taxable things.I do speak out for the people that we do come to the United States to make a better life. Hopefully they do investigate carefully to people that really need it and denied people they dont. Im not getting to much state check but anything will help.
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Comment by dave on February 18, 2009 @ 5:15 am
Crazy. But what is almost as sad as the state withholding tax refunds, are some of the comments above. Looks like uneducated, welfare, rednecks have written some of the poorly stated comments above. Wow. Yet I do agree that wage earners should not have to wait for their earned income. Wake up people and adjust your withholdings so you don't allow the gov to hold your money interest free all year long.People who are getting large tax refunds are plan old stupid as they are providing interest free loans to the gov.! Pay what you owe during the year dummies!
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Comment by Mrs. USMC on February 12, 2009 @ 7:33 am
Ouch Mary, did I pinch a nerve? lol.. wow. People seriously need to learn how to take critisim here. California is by far the worst state ever. It is such a calamity that all the hollywood wannabe's cant take the fact that Terminator didnt do the good job he promised, not to mention that the taxpayers here in Cali have to pay for the lady that decided to have 14 kids medical bills, food, etc.. I wonder what else is next.
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Comment by llove on February 12, 2009 @ 2:16 am
I think that we need a new govern. It's so stupid that the state is holding back our money. We work hard for them and we should get every penny back. If the state wanted to fix this and that, they should have done fund raisers. We, the people shouldn't have to suffer those that made stupid choices. My husband and I don't want IOU's. What's the point of paying taxes when we're only going to get IOU'S?
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Comment by big red on February 11, 2009 @ 3:21 am
the hole reason why we are the way we are is because all of the alians that are in the country. they make all of our money then they send it back home to their 10 kids. everybody on welfare and and stuff like that who are milking the system for all of our money. i cant afford to take my son to the doctor but the alians sure can and take their 10 kids out to mcdonalds afterwards. SEND THEM ALL HOME, IT WILL MAKE A DIFFRENCE.
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Comment by Sally on February 09, 2009 @ 2:34 am
Maybe I can send my IOU to my bank for my house payment, electric bill so on and so forth. Where does Arnold get off with this idea......Rambo!!!!
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Comment by Mary on February 07, 2009 @ 1:37 am
Well Mrs. USMC your remarks are pretty ridiculious as I and many from my company did not vote for Arnold. So before you make any comment like that again get your facts straight.
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Comment by Mrs. USMC on February 05, 2009 @ 7:19 am
Im originally from NJ, my husband is stationed here in San Diego, we've been here about a year. All this is the governments fault, but before anyone opens their mouths about how your tax money goes to people who DONT wanna work, realize that half of you voted for the Terminator guy... all you spoiled Hollywood wannabe's thought it would be so cool to have an "actor" as a governor... now LIVE WITH IT! Maybe next time you all can vote on a governor that has EXPERIENCE in POLITICS.. not have a resume on all the movies he's been in. You guys asked for it. Im content, hope all you can make ends meet.
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Comment by Anthony on February 04, 2009 @ 6:46 pm
The majority of people I know and hear of who are on welfare and taking advantage of the system are white. So please keep the race thing out of this. You can't blame Mexican's as the problem. The majority of those people come here to better themselves. Just like every race their are those dumb asses that don't want to do anything but be a burden to tax payers. We have to get rid of all the worthless political leaders that are getting paid way to much and get the state on back on track.
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Comment by Maria on February 03, 2009 @ 11:28 pm
IOU is not fair the state can get there money from someone else. We work hard for our little money that we earn get at the end of the year..
I deserve it just like everyone else.
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Comment by Mrs. Bailout on February 02, 2009 @ 9:28 pm
It is unbelievable that our tax money supports people that are not from our country & don't want to work. This goverment is corrupted just like Mexico or worse. Why doesn't EXON & Mobil pay the debt since they profited? Mmmm....
I work my butt off & for them to tell me that I have to wait for my money is disgusting but if you owe them you sure cannot send them an I.O.U. to the idiots.
Here is a solution to fix this problem. Change your withholdings to get all your money up-front & let's see if the government have any money to play with.
KISS MY A$$!!!!!!
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Comment by Mrs. Bailout on February 02, 2009 @ 9:24 pm
It is unbelievable that our tax money supports people that are not from our country & don't want to work. This goverment is corrupted just like Mexico or worse. Why doesn't EXON & Mobil pay the debt since they profited? Mmmm....
I work my butt off & for them to tell me that I have to wait for my money is disgusting but if you owe them you sure cannot send them an I.O.U. to the idiots.
Here is a solution to fix this problem. Change your withholdings to get all your money up-front & let's see if the government have any money to play with.
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Comment by KAREN on January 31, 2009 @ 11:09 pm
THIS IS BULL. YOU PAY FOR ALL THE PEOPLE THAT ARE NOT AMERICAN'S WITH OUR MONEY THAT WE WORK HARD FOR AND NOW YOU WANT TO GIVE US I.O.U.'S ON MONEY WE EARNED. IT'S BAD THAT WE HAVE TO PAY FOR ALL THE FAMILY'S THAT DON'T WANT TO WORK. BUT I'M SURE THEY WILL GET A CHECK FROM OUR GOVERNMENT ALONG WITH THIER FOOD STAMPS BUT HOW WILL HELP US NOT THE GOVERNMENT WE MAKE TO MUCH ON UNEMPLOYMENT TO GET HELP.
THE STATE NEEDS TO CHECK ALL THOUS ON WELFARE AND WHAT EVER ELSE THEY ARE GETTING FROM OUR STATE TAXS THAT WE ALL PAY.
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Comment by KAREN on January 31, 2009 @ 11:01 pm
THIS IS BULL. YOU PAY FOR ALL THE PEOPLE THAT ARE NOT AMERICAN'S WITH OUR MONEY THAT WE WORK HARD FOR AND NOW YOU WANT TO GIVE US I.O.U.'S ON MONEY WE EARNED. IT'S BAD THAT WE HAVE TO PAY FOR ALL THE FAMILY'S THAT DON'T WANT TO WORK. BUT I'M SURE THEY WILL GET A CHECK FROM OUR GOVERNMENT ALONG WITH THERE FOOD STAMPS BUT HOW WILL HELP US NOT THE GOVERNMENT WE MAKE TO MUCH ON UNEMPLOYMENT TO GET HELP.
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Comment by Ms. Whatever on January 31, 2009 @ 7:20 am
Are they going to pay us interest at the same rate they would charge us if we were late. This is all a bunch of bull
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Comment by big mike on January 31, 2009 @ 4:58 am
i have a family to support this is an outrage because the goverment screwed up. now innocent citizen's suffer and cant get the money that is deserved million's of u.s. citizen's bust there ass to provide for there family's and when it come's to there paycheck's you tax the hell out my check's kiss my ass.......
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Comment by EARREOLA on January 30, 2009 @ 9:11 pm
WHAT A CROCK OF @#%$. OUR SYSTEM IS SO SCREWED UP. WE WILL GET i o u"s BECAUSE OUR GOVERNMENT SPENT ALL ITS MONEY HELPING THOSE BIG COMPANIES STAY AFLOAT, FILTHY RICH CEO"S. SPENDING A MILLION DOLLARS ON DECORATING AN OFFICE.$85,000 DOLLARS FOR A RUG. AND ASKING FOR A 30 MILLION DOLLAR COMISSION. WHERE DO WE THE WORKING PEOPLE STAND.
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Comment by MISS L!$@ on January 27, 2009 @ 9:13 pm
I THINK THIS IS A BUNCH OF BULL CAN WE TAKE THAT IOU AND PAY OFF OUR DEBT.AND FOR THOSE WHO OWE THERE TAXES ARE THEY ABLE TO SEND THEM AN IOU
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Comment by Deborah on January 17, 2009 @ 8:14 pm
I think this is crap you can give money to other countries, you can spend our money on the war you can even go as far as giving billion dollar bail outs to great companies were the C.E.O's of the companys come to congress in private owned jets begging for money... but when you spend hours out of your life away from your family at working working so that you can provide for them and keep them warm with just the basics put your hand out and ask for a bail out and get denied and then.... expect a refund check and your local news annouces that you'll be getting an I.O.U instead of the money they steal from your paycheck each week.... thats enought to picket and RIOT EVERYDAY UNTIL YOUR CHECK COMES IN THE MAIL AND IF THERE PUTTING INTREST ON THAT I.O.U IT BETTER BE MORE THAN 1%..... WHERE IS OUR BAIL OUT MONEY
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Comment by DAN on January 10, 2009 @ 1:56 am
Where is the bailout for all the middle class Americans struggling to stay afloat. Banks, automakers, etc...
(who knows who else) are all getting bailouts. Here most of us Americans are; living by the rules and policies, and all these Banks and automakers did not play by the rules, get billions of bailouts, and we get an IOU... What is this "America" coming to?
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Comment by Mark on January 09, 2009 @ 9:16 pm
I am setting my payroll tax deductions to 49 so that no state tax comes out. And I will lobby for others in the state to do the same. We can square up when we do our tax returns
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Comment by PETE on January 08, 2009 @ 8:39 pm
I THINK THAT IS JUST ABUSING POWER!
THE GOVERNMENT TAKES MONEY FROM OUR CHECKS ALL YEAR LONG. DO WE GIVE THEM I.O.U.'S FROM OUR CHECK? NO!
THEY JUST TAKE OUR MONEY!
THEY SPENT BILLIONS OF DOLLARS ON WAR AND MADE BILLIONS IF NOT TRILLIONS ON GAS PRICES LAST YEAR!
NOW THEY CANNOT RETURN THE MONEY THEY HAVE TAKEN FROM OUR HARD EARNED CHECKS!
I THINK PEOPLE WILL RIOT IF THIS WERE TO HAPPEN!!!!!!!!!!
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Comment by anoymous on January 07, 2009 @ 9:50 pm
Government really needs to think about the working middle class in this situation. Here it is we have worked all year long and when it comes time to getting are taxed we paid, it's zero. Something the government would do. There is going to be a riot then a huge mess from everyone. thanks government arnold and bush. you were of no help whatsoever!
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Comment by MR. BL4CK on January 07, 2009 @ 4:32 pm
Ya know, this isn't surprising. A governor with open support for the Nazi's is helping the economic crisis thicken. It's all a Ponzi Scheme by the government to break our backs. Get prepared, buy guns, invest in gold & silver if you can. It's about to hit the fan!!
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