You might get an IOU instead of your state income tax refund

| 18 Comments

State Controller John Chiang revealed the order of IOU payments because of the budget debacle in Sacramento. Lawmakers will be first in line to get IOUs instead of paychecks. That's a good thing because lawmakers created this mess.

But next in line, according to The Sacramento Bee, are state income taxpayers awaiting refunds and companies that do business with the state. Now that's not fair. For taxpayers, that money was withheld through payroll deductions and is in excess of the amount needed to cover state income taxes. For vendors, that money covers goods and services provided to the state.

How about this? We'll pay our state income taxes in IOUs instead of actual cash. Then when the budget issues are all sorted out by the governor and Legislature, we'll cover the IOUs if we have the money available. Otherwise, the state can continue to hold our IOUs until we taxpayers deem that we can afford to pay off the phony paper.

18 Comments

Well, in a way it's fair. We taxpayers elected the politicians mucking things up. We passed propositions that made it harder to balance the budget. We threw out Davis and elected Schwarzeneggar largely because we wanted to get rid of the car tax. And most of us seem to care more about who won "Dancing With the Stars" than we do about fixing our broken state government. So why shouldn't we get docked?

Assuming Mike that you are more concerned with who wins dancing with the stars but I am not included in the us of that statement. They were elected to do a job that they are not doing and should be fired just like anybody else. Thats why [politicians get away with so much because they are not in jeopardy of losing their jobs if they arent doing them. They need to bring in some new blood to take a whack at the budget since they are clearly at a stalemate. I would love to have a whack at it. At this point I am sure some tax increases are needed along with more cuts.

Jim Boren for governor in 2010! Viva Boren!

What's a tax refund. Never heard of it.

I don't like it either but if the money is not there then it's not there. Many in the private sector have lost jobs, state employees have been laid off and received a 10% pay cut. Vendor contracts have been cancelled. This evens out the load onto more people. I wish there was a way to let the recently unemployed, who have paid taxes get their refunds though; at least the rest of us are still working for the moment. You do what you have to do.

That said, I think the fleet of cars supplied to legislators should be sold off. Let them drive their own cars to work like the rest of us. The recent raises given out to already well paid legislative staff should be cut back like the rest of the state workers. A 10% decrease to a staffer making $80,000 a year is much less a burden for legislative staff than for the minimum wage DMV employee. Payments to special interest programs that aren't involved in assisting with the basic food, housing and medical needs of people without should be cut, etc. All this needs to be done PRIOR to our being issued IOUs.

Next step is to change your tax withholding so that you don't pay tax from your paycheck but rather hold the money yourself and pay quarterly. That way we can refuse to pay taxes until the legislators start doing their jobs. Pipe dream I know but nice thought.

Mike(D)From anyone other than you I would find that absurd and nonsensical.Not all of us are idiots so don't count me in company with you and your co-horts.

I'm always grateful for your input, Brian. Whenever you get on my case with your little one-liners, I know I must have said something right.

aks. Those cars are probably leases so they just have to be turned in. Could I also suggest the legislators per diem be eliminated? If they can't survive on $120,000 a year let them find another job that pays that.

The governator should be fired. SImple as that. He screwed up the state and can't seem to fix it. We have no money and now they want to issue IOUs for refunds?! Yes, I think I'll send an IOU for my taxes and how about my landlord? Think he'll accept an IOU? Right. This state sucks. And for the record "we" did not throw out DAvis and elect Ahnold. I never did and never will support Mr. Schwarzenegger for office or any other position.

A big time CEO got fired because of the mortgage slump and selling off stocks or what-ever. Now that poor schnook has to sit around with his $16 million severance pay and nothing to do.

"Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy that did not commit suicide." John Adams to John Tyler April 15, 1814

"... a democracy collapses over loose fiscal policy...." (Feel free to call me an idiot. But all of you know the truth when you see it.)

Who are we fooling...it's just another ripoff and totally unacceptable.To qoute J.D.Wentworth..."It's my money and I want it now!".

We could sure use the 40 billion that Enron
made off with. Because Ken Lay was the Governator's
biggest contributor, the debt was largely forgiven,settled for
pennies on the dollar,and the foolish voters thought it was about a car-tax.
Like mike d says, you get the government you deserve.
The problem with the budget is that no one in Sacramento
has any experience writing a budget during a global depression.
They can't simply present a budget that looks like last year's budget.
They must ignore their dance-partners and serve the people of California.
(another area in which they have no experience.)

No,that is not fair at all! The money was taken out of our pay checks! We all work hard for our money and now they want to give us a I.O.U. We are entitled to that money. There are so many people losing jobs and getting their hours cut, we can barely feed our families as it is with the gas going up and food prices going up. So basically their saying that they want to give us a piece of paper that just states in reality that we are not going to get our hard earned money! We ALL need our money...

HOW ABOUT IF THEY PAY INTEREST ON THOSE I.O.U.'S

I agree they should pay interest and penalties on the IOUs. When we don't pay our taxes on time that is what the government requires of us. The penalities I had to pay when I went through a rough patch, were significant.

The idea just sucks! But....We are at just as much fault as the politicians? Why you say, people are selfish, an will take as much before giving. AND no one regulates anything. Look at all those programs that are meant to be used to help those who need assistance. I mean, just the ones that need it. I’m fine with helping. But then you have those many more than few.... those who keep popping babies like PEZ dispensers. An apply for assistance? Its like there getting paid$ to have more children? WTF. Any just because you have children, why are you entitled to a higher tax refund? See the above statement. Another WTF! An then you have those who are labeled as "Drug Addicts"- Why does my tax paying revenue pay for them to keep getting high. Educate, an program everyone to join the workforce like everyone else. An if they can’t handle it like the rest of us, by putting in 40 plus hours a week, then that will be on them. Harsh, but I’m pretty sure it’ll get a lot of people off their couches!

We have so many bogus State/Govt. programs that need to be re-evaluated with stricter guidelines. We give out money to anyone or everyone. But hey, maybe those are just some of my ideas of a better government......

I like this comment. It's simple and makes all the sense in the world. A person gets hired to do a job. If he or she does it, he or she stays employed. If he or she doesn't do it, he or she gets booted. That's how employment works on almost every level except government - and why is that? We as citizens have not been holding them accountable. Let's not forget, we are their bosses and not the other way around. It's got to the point where it doesn't look and feel that way but it's absolutely the case. I don't know about you all, but I'm personally done with feeling like they have me by the balls when it fact it's the other way around. I say, let's collect ourselves in numbers (like it's always been done in the past) and start knockin on Sacramento's door and putting the heat on them!

Well everyone should be thinking about how to get their end of the year tax rebate as close to $0 as possible. Then they can wonder this time next year what to do without everyones money.
After you do that I suggest we all press for legislation to prevent them from keeping or even using money that does not belong to them ever again.
If I used someone elses money that was overpaid to me what do you think would happen?
One last thought is that if they are dumb enough to issue the IOU's I suggest each and everyone of us help get a class action lawsuit going. I have got to believe it has to be illegal what they are doing.

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  • curt: Well everyone should be thinking about how to get read more
  • Alan Michalak: I like this comment. It's simple and makes all the read more
  • Angered Californian!: The idea just sucks! But....We are at just as much read more
  • aks: I agree they should pay interest and penalties on the read more
  • HARD WORKING AMERICAN: HOW ABOUT IF THEY PAY INTEREST ON THOSE I.O.U.'S read more
  • lissette calderon: No,that is not fair at all! The money was taken read more
  • osage orange: We could sure use the 40 billion that Enron read more
  • Brian Murray: Who are we fooling...it's just another ripoff and totally unacceptable.To read more
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This page contains a single entry by Jim Boren published on December 30, 2008 4:55 PM.

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