No Gold Left In The Golden State
12 June 2009 | By Sonja in Economy, Politics, Sonja, TN Blog, Uncategorized
Somehow, the California State Franchise Board mailed us a tax refund this week. When I opened it, I discovered that the state had accidentally failed to calculate and certify the Browns 2007 tax return. Suprisingly, California owed my husband and I a sizable amount of tax refund.
Ordinarily we would have been tap dancing.
This year my gut reaction was; ”Can the State of California afford to be giving anything back?”
In these times, one would think the tax board would just keep the leftovers and remain silent.
Watching this week’s headlines, there’s no sense in driving straightaway to Best Buy for something new and electronic. The entire “refund” is going to be reabsorbed byThe California State Government on June 15th, and there could be more supplemental taxes to come.
It seems there’s just no more gold in the Golden State.
Chris Thompson of Reuters Newsservice writes this week that the State of California is due to go completely bankrupt in less than 50 days. Voters recently turned down the appeal of desperate state legislators and Governor Arnold Schwarzenegger to borrow “future” lottery earnings and approve new taxes to put a bottom in the state budget. Unbelievably California taxpayers said a resounding “NO” to wasting more of their hard earned money in Sacramento.
Revenues from personal income taxes are down almost 40% from last year, and corporate taxes have fallen by 52% in the state. No wonder. California has evolved into a country that has so many hidden taxes for small and big businesses, that more and more of them are beating a path to Arizona or tax-friendly Nevada. Add to those figures a decrease in sales tax revenues by 7.6 %, because anyone with the luxury of cash on hand is keeping it in the bank. It’s easy to understand why the state budget is in flames. 
With the home mortgage market still limping along and unemployment as high as 10% throughout California’s largest cities, lawmakers and our Governor are in a race against time to find the least painful solution.
Governor Schwarzenegger suggests cutting welfare programs altogether.
State legislators who have been selling out this state for decades to special interests want to save programs and find creative financing strategies. California taxpayers are digging in their heels. With sales tax at 10%, franchise taxes stealing up to another ten percent from the paychecks of California workers, gay taxes making a gallon of gas in the state more expensive than anywhere else in the country, politicians may finally have to accept that the well is dry. Can’t get blood from a stone! No more where THAT came from!
One hundred and fifty years ago now, when money was hard to come by the famous “forty-niners” found fortune by being resourceful and getting their hands and knees dirty panning for gold.
It’s as good an idea….as any.
One hundred and fifty years ago now, the “forty-niners” found fortune by being resourceful, and getting their hands and knees dirty panning for gold.
It’s as good an idea….as any.
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