81artmonk Posted January 29, 2009 Share Posted January 29, 2009 AP http://www.fox40.com/pages/landing/?blockID=188347&feedID=190 SACRAMENTO - California's controller says he will begin a 30-day delay on tax refunds and other payments starting February 1 because the state is running out of money.Controller John Chiang said Friday he will have no choice but to delay $3.7 billion in payments next month because lawmakers have so far failed to address California's growing deficit. The state is on the brink of issuing IOUs as it faces a $41.6 billion shortfall over the next year-and-a-half. Chiang says his office must continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs. A severe drop in tax revenue has left the state's main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors, but those options are no longer available. This really fries my butt!!! So they take out MY MONEY, and would send me to jail or create a living nightmare had I not paid my taxes, yet they can tell me that they aren't going to give me MY MONEY back that I over paid, until they get out of this mess!!!! If I'm not mistaken they call that theft. Link to comment Share on other sites More sharing options...
Larry Posted January 29, 2009 Share Posted January 29, 2009 If I'm not mistaken they call that theft. Not when the government does it. "Land. Land. Land. see: Snatch" Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 Remember - you are at fault for giving the state too much money. Adjust your tax withholdings. Otherwise, you are giving them a loan with no repayment plan. Link to comment Share on other sites More sharing options...
GibbsFactor Posted January 29, 2009 Share Posted January 29, 2009 "Single acts of tyranny may be ascribed to the accidental opinion of a day. But a series of oppressions, begun at a distinguished period, and pursued unalterably through every change of ministers, too plainly proves a deliberate systematic plan of reducing us to slavery." Thomas Jefferson Link to comment Share on other sites More sharing options...
deejaydana Posted January 29, 2009 Share Posted January 29, 2009 Newt Gingrich, when he was in Orange County 3 weeks back, commented that Sacramento is even more poorly run than Washington DC. For the gov't to say they are going to issue "IOU's" to the people for their returns should be cause for revolt on some level. Let me get this straight, if you can't file on time as an individual, you are charged a higher rate for your return (interest basically). As taxpayers, if the state tells us they are going to delay our money, should we not also be entitled to interest on those funds? Complete hypocrisy from our leaders...same as it ever was. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 You guys still don't get it. Why did you give the state government a free loan on your money in the first place? Especially if you don't approve how the government is being run? Adjust your withholdings. It's not rocket science. Link to comment Share on other sites More sharing options...
Duckus Posted January 29, 2009 Share Posted January 29, 2009 That sucks. A lot of people are going to need that money during these hard times. This could be a huge huge mess. I wonder if the state funds from the stimulus package will help this situation. I hope though that it teaches people to correctly fill out there W4 forms and have the proper amount taken from their paychecks. We all sit on this board and demand the government stop wasting our money, but then we turn around and give them interest free loans to do it. You want to stop the government spending some of your money, don't overpay them. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 We all sit on this board and demand the government stop wasting our money, but then we turn around and give them interest free loans to do it. You want to stop the government spending some of your money, don't overpay them. Personal responsibility is ignored by the same crowd that crows it at every turn when they can blame the eeeeeveeeeeeel gubernament. Link to comment Share on other sites More sharing options...
sacase Posted January 29, 2009 Share Posted January 29, 2009 I know it must suck for the residents of Cali, but honestly, I rather them take your money, than money from every other tax paying American just because they have a budget shortfall. Perhaps the Cali voters can get them to cut some of their programs and balance the budget. Cali needs to bail itself out. Link to comment Share on other sites More sharing options...
Burgundy Burner Posted January 29, 2009 Share Posted January 29, 2009 http://www.dailywealth.com/archive/2009/jan/2009_jan_29.asp?printdoc=print Those Oblivious Fools... How to Make Money Off 'em By Dr. Steve Sjuggerud January 29, 2009 Greetings from Southern California... Ground zero of denial. Here in California, home prices have dropped more than in any other state. They're down 27% in the past year... and as much as 44% in the "hottest" bubble markets like San Francisco. Unemployment here has jumped from 5.9% in late 2007 to 9.3% (as of December). But as I drove up the coast this past weekend, I passed Bentley and Ferrari dealerships from Newport to Laguna Beach. It seemed every other car was a Mercedes... driven by teenagers and twentysomethings. Friday night, I was in the Gaslamp district of San Diego. The streets were packed with kids... fashionably dressed kids, everywhere, partying away, blowing their money (or their parents' money). The Gaslamp Strip steakhouse doesn't take reservations. But I walked up with a few colleagues at 7 p.m., and the wait was nearly three hours. Doesn't sound like times are bad in San Diego. California's government has been as deep in denial as these kids. It's increased its budget by 40% over the last five years. A big chunk of its money comes from property taxes... Apparently, it expected house prices would actually make it to the moon. California has behaved so foolishly, it has the lowest credit rating of any state. It's a terrible situation, but today, we have the chance to make some money off it... You see, finally, Governor Arnold Schwarzenegger is facing the problem. Schwarzenegger says the state is over budget by more than $40 billion and has to make cuts now. He suggests things like cutting the school year short by a week and cutting two Fridays out of the work month (essentially reducing pay for state workers by about 10%). And California might not send out tax refunds or welfare checks next month to conserve cash. But that's not enough for investors in California government bonds (municipal bonds). They've panicked and run away. For example, the PIMCO California Intermediate-Term Municipal Bond Fund had hovered around $10 a share for most of its decade in existence. Then last month, it dove down to a low of $8.21 a share. But PIMCO's bond managers have done their homework. One study they often cite (from Moody's) shows that, going back to 1970, the cumulative default rate on municipal bonds was 0.04%. PIMCO looked back even further... and found compelling evidence in favor of municipal bonds. Apparently, only Mississippi really defaulted – and that was long before the Civil War. According to the Wall Street Journal: "PIMCO says that from 1929 to 1937, the annual default rate across all municipal bonds, including those issued by cities and towns, was 1.8%. Bad, but not cataclysmic." The Wall Street Journal concluded: "If the federal government stepped in to save GM and Fannie Mae, what are the odds it would allow California to file for bankruptcy? They seem pretty slim..." While Californians seem in denial about their current situation, Governor Schwarzenegger gets it. And California won't be allowed to file for bankruptcy.Today, for the first time in decades... even a century... municipal bonds in general are a bit of a gamble. Because the state was in denial for so long, California bonds are the biggest gamble of the bunch. But the PIMCO fund I mentioned currently pays 4.5% interest – tax free. You'd have to earn close to 7% interest in a taxable account to match the interest you can earn in California state bonds now. Plus, you could make a nice capital gain as investor panic subsides and the PIMCO fund heads back toward $10 per share. Link to comment Share on other sites More sharing options...
deejaydana Posted January 29, 2009 Share Posted January 29, 2009 Personal responsibility is ignored by the same crowd that crows it at every turn when they can blame the eeeeeveeeeeeel gubernament. And any form of responsibility is cast off by all members of the California government with few exceptions. When things tank they just tell the people there's a need for more money to fix the latest disaster. Link to comment Share on other sites More sharing options...
Drop Posted January 29, 2009 Share Posted January 29, 2009 Adjust your withholdings. It's not rocket science. I'm not in Cali, but i do overpay too much every year, and i'm hoping for a nice return this year. However, my wife has been telling me that i should adjust my withholdings for some time now, and i think it might be time to do that. Link to comment Share on other sites More sharing options...
Thiebear Posted January 29, 2009 Share Posted January 29, 2009 A lot of people put in extra so as NOT to get in trouble and find out they owe 2000 a month after Christmas... I also give the lunch lady a 20 for the vegetable lasagna, but i expect 15 in change. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 A lot of people put in extra so as NOT to get in trouble and find out they owe 2000 a month after Christmas...I also give the lunch lady a 20 for the vegetable lasagna, but i expect 15 in change. Are you okay with the change from that 20 you gave the lunch lady in February 2008 coming back to you in 12-15 months? Link to comment Share on other sites More sharing options...
Thiebear Posted January 29, 2009 Share Posted January 29, 2009 Are you okay with the change from that 20 you gave the lunch lady in February 2008 coming back to you in 12-15 months? She's cute so i'll take trade. Link to comment Share on other sites More sharing options...
twa Posted January 29, 2009 Share Posted January 29, 2009 I know it must suck for the residents of Cali, but honestly, I rather them take your money, than money from every other tax paying American just because they have a budget shortfall. Perhaps the Cali voters can get them to cut some of their programs and balance the budget. Cali needs to bail itself out. Too late, bailout money for several states is in the "stimulus" Link to comment Share on other sites More sharing options...
NavyDave Posted January 29, 2009 Share Posted January 29, 2009 I don't feel sorry for The Peoples Republic of Cali. Arnold initially was moving towards fixing budget issues but the people listening and believing to the BS from the Unoins and liberals, scared him into moving to the far left to stay in office Link to comment Share on other sites More sharing options...
Larry Posted January 29, 2009 Share Posted January 29, 2009 Although I suspect that pretty soon, now, somebody's going to point out the facts (which seem to be unmentioned so far in this thread) that something like half of California's revenue are beyond the jurisdiction of the California legislature, (and the other half cannot be changed because the GOP wants the state to go bankrupt, because they believe that the Democratic Party will get the blame), and that something like half of the state's spending is also beyond the jurisdiction of the legislature, both due to voter passed Constitutional mandates. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 The furloughing of the state emploeyees for 2 days a month is going to kill the local businesses downtown here in Sacramento. Especially the local restaurants and convenience stores. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 29, 2009 Share Posted January 29, 2009 Although I suspect that pretty soon, now, somebody's going to point out the facts (which seem to be unmentioned so far in this thread) that something like half of California's revenue are beyond the jurisdiction of the California legislature, (and the other half cannot be changed because the GOP wants the state to go bankrupt, because they believe that the Democratic Party will get the blame), and that something like half of the state's spending is also beyond the jurisdiction of the legislature, both due to voter passed Constitutional mandates. California is one of the few states, from what I can tell, that heavily relies on sales taxes and income taxes for revenue. Most states use those two taxes to coincide with high real estate taxes. California's real estate taxes are low. Link to comment Share on other sites More sharing options...
deejaydana Posted January 30, 2009 Share Posted January 30, 2009 Although I suspect that pretty soon, now, somebody's going to point out the facts (which seem to be unmentioned so far in this thread) that something like half of California's revenue are beyond the jurisdiction of the California legislature, (and the other half cannot be changed because the GOP wants the state to go bankrupt, because they believe that the Democratic Party will get the blame), and that something like half of the state's spending is also beyond the jurisdiction of the legislature, both due to voter passed Constitutional mandates. Yeah, the GOP wants to BK the state. Nice post a**hat Link to comment Share on other sites More sharing options...
Larry Posted January 30, 2009 Share Posted January 30, 2009 Yeah, the GOP wants to BK the state. Nice post a**hat What, exactly, have they done to prevent it? Link to comment Share on other sites More sharing options...
Major Harris Posted January 30, 2009 Share Posted January 30, 2009 What, exactly, have they done to prevent it? i think you made the claim. Link to comment Share on other sites More sharing options...
deejaydana Posted January 30, 2009 Share Posted January 30, 2009 What, exactly, have they done to prevent it? Who, the GOP or just "government" in general? Your implication that the GOP is the party trying to BK the state is beyond groundless but OK, I'll play your mindless game. They have been almost as guilty as the Dems but only because they have a sellout in Arnold who abandoned his promises and is a Republican in name only. In that sense I lay some of the blame at their feet but the Democrats in this state are the party of larger and larger gov't, not the GOP. At this point both stink and cleaning house is a completely idealistic yet noble aim but nobody stinks more than the Dems. Link to comment Share on other sites More sharing options...
IHOPSkins Posted January 30, 2009 Share Posted January 30, 2009 .....nobody stinks more than the Dems.I see you have been to Chicago! Link to comment Share on other sites More sharing options...
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