California is planning on delaying tax refund payments for 30 days in order to keep the state operational for a few additional weeks before funds run dry.
Controller John Chiang, who acts as the state’s accountant, said he will have no choice but to delay $3.7 billion in payments next month because the state is running out of cash. (source: BussinessWeek)
As the article states, California does not have to issue refunds until May 30th, although they usually send as processed. Knowing this, it is clear that the state is deliberately trying to threaten the people, who in turn will pressure their reps into passing a junk budget.
On to the facts:
- The state essentially borrows taxpayer’s money interest free.
- The state goes on a spending spree, ignores current state of the economy.
- The state refuses to make required cuts and insists that higher taxes is necessary.
Sounds like a scam to me.
Then the state whines about not having sufficient dollars due to a drop in sales taxes, property taxes, and capital gains taxes. And while taxpaying households keep their spending to a minimum, the state government avoids responsibility and continues its spending spree. And when shit hits the fan and they go bankrupt, they DEMAND MORE MONEY FROM THE PEOPLE!
Not only that, but California hasn’t had a positive cash balance since July 12, 2007. In business, hard decisions would be made immediately. But for our government - yeah right.
Piss off Sacramento. It’s time for a reality check and day of reckoning.
