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CA state tax rebates on hold

X3pilot

Texans fan - LOL
Aug 13, 2007
5,860
1
SoMD
So effectively, CA taxpayers are being forced to loan the state government money to keep it operating? Wow, that should stimulate the CA economy, then if other states decide to do this....

During the 30-day delay, the controller's office estimates that a combined 2.74 million California individuals and businesses will have their tax refund delayed.

The controller's office estimates that the delay in tax refunds will free up $1.99 billion over the next month to pay for education, debt service, and other payments that legally have first claim to state funds.
I see the legality of first claim to state's funds, but, um, aren't those refunds the people's money?

Glad you guys have the Terminator on your side.

Link to story
 

$tinkle

Expert on blowing
Feb 12, 2003
14,591
6
i've kind of been following this for the past few weeks. it's gray davis all over again. i have theories, but they're mostly based upon preconceived notions
 

ohio

The Fresno Kid
Nov 26, 2001
6,649
26
SF, CA
Arnie is ****ed. The structure of the CA constitution coupled with prop 13 pretty much guarantees a budget shortfall with no real means to cover it (i.e. tax increases are all but impossible). When there's no fat left to cut and you start losing muscle and bone, it's either steal or die.
 

Samirol

Turbo Monkey
Jun 23, 2008
1,437
0
It is also ridiculous that a 2/3 vote is required to pass a budget, because the hyperconservative Republicans can **** things up so easily
 

ohio

The Fresno Kid
Nov 26, 2001
6,649
26
SF, CA
It is also ridiculous that a 2/3 vote is required to pass a budget, because the hyperconservative Republicans can **** things up so easily
That's what I was getting at WRT the constitution. I should have been specific.
 

Samirol

Turbo Monkey
Jun 23, 2008
1,437
0
That's what I was getting at WRT the constitution. I should have been specific.
I wanted to clarify it for the non-Californians, since I think most states don't have a 2/3s rule, I had a feeling that it was what you were talking about

California has some of the craziest, most openly corrupt Republicans in the US.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
I wanted to clarify it for the non-Californians, since I think most states don't have a 2/3s rule, I had a feeling that it was what you were talking about

California has some of the craziest, most openly corrupt Republicans in the US.
The biggest problem is that they can easily pass spending initiatives through ballot initiatives, but there's no requirement that the initiative spell out how it's paid for. So the government is required to spend money it doesn't have, and the legislature makes passing any type of tax increase virtually impossible.
 

Upgr8r

High Priest or maybe Jedi Master
May 2, 2006
941
0
Ventura, CA
I just wrote Arnie a scathing email. Let's see if he replies
Arnie replied to my email

Thank you for writing to share your thoughts with me about our current budget situation.

Shortly after adopting the 2008-09 budget, economic conditions began deteriorating rapidly, and California faced a massive revenue shortfall that would only grow unless corrective action was taken. After months of negotiating with Republicans and Democrats, we still have not reached an agreement on a solution, and estimates now show our budget deficit reaching a staggering $42 billion during the next 18 months if nothing is done. We are in our third special session and we've declared a fiscal emergency - and every day that goes by makes the budget problem that much harder to solve. Now is the time to turn the page on months of failed negotiations and move forward with the balanced budget my administration proposed on December 31.

To close the budget shortfall, I have proposed reducing our spending by $17.4 billion with most of those reductions coming from the biggest programs in the budget: education, health and human services and prisons. I have made tough choices I wish I did not have to make, and I know this is a terrible time to cut programs people depend on. But in an emergency like this, we have to take quick action to avoid even worse problems - even if they include making decisions we don't like. I have also proposed increasing revenues by $14.3 billion, including a temporary 1.5-percent increase in the state sales and use tax. Our crisis gets worse every day that goes by without a solution. California will soon run out of cash and start issuing IOUs to people it does business with. It will also delay refunds to our hard-working taxpayers - the people of California deserve better than that.

I continue to urge Californians to call their legislators, send them e-mails and postcards and tell them to not waste any more time. It is time for Republicans and Democrats to put politics aside and make the tough choices needed to keep our state from a financial disaster that will take years to recover from.

Sincerely,


Arnold Schwarzenegger
:banghead: