NEWS JUNKIE POST
Jul 2, 2009 at 7:15 amCalifornia: Your IOU Is In The Mail
By Gilbert Mercier, NEWS JUNKIE POST
Yesterday, once again, the California legislature failed to address its budget disaster. California is officially insolvent, and the State Treasury announced that they will have to issue IOUs to creditors. This is the first time since the Great Depression that the Golden State was forced to such a desperate measure.
This dire situation will affect all Californians, needless to say, but also the rest of the nation. One out of 8 Americans live in the Golden State, and if California was an independent State in would rank as the 8th largest economy worldwide. The nation, at large, also relies on California’s agriculture for crops such as fruits & vegetables.
If and when you get your California’s IOU in the mail, let’s say for your State tax refund, you will not be able to cash it until October. Needless, to say it will only compound problems for most Californians, especially for the ones struggling to keep a roof above their heads. The unemployment rate in California is even higher than in the rest of the country, and currently looms at around 12%.
Democrats & Republicans in the California legislature deserve full blame for their failure to address a catastrophic situation. Democrats for not understanding that spending cuts are necessary, and Republicans for their unwillingness to raise taxes. The blame also rests on the shoulders of Governor Schwarzenegger for his lack of vision and leadership in the matter.
It should be easy to understand that the only way out of this quagmire is a dual approach: Cut spending & raise taxes. The job losses in California will only increase because of the gridlock. It is something that California voters should keep in mind in the next election. It would not be surprising if a lot of elected officials get a pink slip as opposed to the IOUs we have coming in the mail.
I’d say the approach California should be taking is not necessarily to raise taxes. But to actually tax those the State knows they should be taxing, Big Oil and Big Corporations, who by the way benefit from all sorts of breaks in this area.
The people of California, me being one of them, pay enough. Enough. And now with an almost 10% sales tax in L.A., I don’t know if I can afford any more from these looters.
If the State would tax the big businesses for their fair share, this would close the budget gap by 2/3. That refusal of a proper distribution of the tax burden is taking, no stealing, from the people of California.
Doesn’t make sense to not tax the big oil companies and corporations. Everyone should pay their share, no exceptions.
How about if the state just refuses to spend Billions of dollars caring and supporting “illegal” persons in their jurisdiction ?? Don’t ya’ think the word ILLEGAL has a specific meaning ??