Custom Search

Thursday, July 2, 2009

Pay Your Taxes With an IOU!

FN: Can California residents pay their taxes with IOUs now? I mean, it would only be fair right? The same arguments apply. Expenses exceed revenues for the individual consumer, just like the state. So why can the state pay its bills with IOUs but individuals can't pay the state with IOUs?

Oh wait. Isn't fiat currency (like the DOLLAR) just one big fat IOU? Hehe.

How can this end well? How? (The last paragraph is epic.)

State rolls out $3.36 billion in IOUs today: "California plans to begin issuing billions of dollars in IOUs today to scores of creditors, including private businesses and county governments.

The move will not affect many individuals who receive government assistance. Low-income people, the elderly and the disabled will receive their regular checks on schedule. Schools, state workers, Medi-Cal providers, pension funds and In-Home Supportive Services are all protected by law from receiving an IOU in lieu of a real check.

But thousands of vendors who provide goods and services to the state will be given IOUs instead of cash. From a company that sells french fries for prisoners to a firm that pumps out latrines in state parks, many businesses are trying to save cash and hoping their banks will accept the IOUs.

Meanwhile, the University of California has not yet decided whether it will front the money for educational Cal Grants, another program that will get IOUs.

State Controller John Chiang expects to disburse $3.36 billion in IOUs and $10.9 billion in regular payments this month.

After officials decide this morning how much interest they'll pay on the IOUs and when they can be redeemed, the controller's printing presses will churn out the first batch of IOUs for 28,742 state tax refunds totaling $53.3 million, said Garin Casaleggio, a spokesman for the controller.

The IOUs probably won't be cashed by the state for 90 days - and then only if the treasury has the money to cover them."

18 comments:

Mike T. said...

Back to the days of Scrip. Andrew Jackson has the last laugh. From the Scrip WIKI:

"During the Great Depression, many local governments were forced to pay employees in scrip at the height of the crisis."

So exactly how is this not printing money? Especially these days when *ALL* currency is debt-based?

Alice Cook said...

That photo sums it all up.

How did things get so bad?

Alice

Matthew said...

California is so the new Zimbabwe

Doug said...

So the welfare recipients get cash and the vendors who work for a living get these bullsh1t IOU's?

California is a POS state plane and simple.

Anonymous said...

There used to be a time when people flocked to CA. Now there's evidence of an exedous. Even illegal immigrants are fleeing. I want out of here too.:-(

poll said...

Wow, loving the two photos you posted. You got potential. Please come visit my site St. Paul Business Directory when you got time.

poll said...

I forgot about those! Maybe they look good w/ the right outfit? I didn't like skinny jeans when I first saw them. lol. Please come visit my site Wichita Business Directory when you got time.

polo shirts said...

History of polo ralph lauren. Polo fashions had its humble beginnings in 1968 when tie salesman Ralph Lauren gave it a kick start. By 1969 he had a boutique polo ralph lauren factory stores within the Manhattan department store Bloomingdale's. ... Brands and luxury standard. Since Ralph Lauren's first brand, Polo Ralph Lauren, was launched, the company has expanded to include a variety of luxury brands such as Polo Golf, Polo Denim, Polo Sport. You can buy cheap Ralph Lauren Clothing at Ralph Lauren outlet.Also We provide polo shirts
Ralph Lauren polo shirt, 50% OFF! polo ralph lauren outlet online is your best choice!In 2006, polo ralph lauren outlet became the first designer in Wimbledon's 133-year history to create official uniforms for the tournament. As part of this year's event, which starts next week, polo ralph lauren sale will introduces the first ... determination to maintain and enhance the values for which our two brands are famous throughout the world. The rugby ralph lauren brand brings to Wimbledon the look of timeless elegance, drawing on our rich history and traditions

Buy Trichozed stop hair loss pills said...

I always pay the taxes on but what the hell is IOU.

Effective penile enlargement device said...

really good point made..and lol the pic is funny indeed...

muebles online said...

It cannot succeed in actual fact, that is exactly what I think.

Vimax penis enlargement pills said...

The photo you have shared is very funny. I loved your blog and I am really thankful to you for sharing.

Male Extra enhancement pills said...

The move will not affect many individuals who receive government assistance. Low-income people, the elderly and the disabled will receive their regular checks on schedule.

Sizegenetics penis enlargement device review said...

Pension funds and In-Home Supportive Services are all protected by law from receiving an IOU in lieu of a real check.

Compare the best enhancement gels said...

Slumps in bank stocks foreshadowed previous declines in the S&P 500 as investors focused on real-estate losses that curbed lending.

Best tablets for small penis size said...

Horrible !! Quit funny . Like you writing style .

Best Charcoal Smokers Review said...

After reading your article i think that many of your visitors will try to pay their taxes with an IOU...

Vigaplus said...

This is described an authentic way.More or less the topic is relevant.Tax should be paid on time.