What happens if they cannot pay us back?

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Nov 5, 2009.

  1. Shivetya macrumors 65816

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    #1
    http://www.latimes.com/business/la-fi-state-tax31-2009oct31,0,2028140.story


    We already have seen where they issued IOUs to people because they didn't have te money. So, what happens if at April they don't have the money to issue refunds they are legally required to do?

    Actually WSJ asked that question too http://online.wsj.com/article/SB10001424052748703932904574511923279377100.html
     
  2. Eraserhead macrumors G4

    Eraserhead

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    #2
    This pretty much highlights the problem with direct democracy in the US.

    The Swiss only pull it off because noone will bail them out if they screw up, so they are forced to make adult/sensible decisions.
     
  3. Peterkro macrumors 68020

    Peterkro

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    #3
    I don't think you can judge direct democracy in the U.S. until it's tried, that pretty much goes for Switzerland too in spite of their early attempts at direct democracy.
     
  4. iBlue macrumors Core

    iBlue

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    #4
    Though still relevant and a squeeze for many, it's not THAT bad. Are they applying this to every single tax payer? I think it's a little cruel to levy this upon the lowest earners.

    also:
    Hoping some of the people who need their pittance the most will realize this.



    Shivetya, not that you ever seem to reply to your own crap-stirring threads but what is this "us"? You're not a California resident, are you?
     
  5. Blue Velvet Moderator emeritus

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    #5
  6. Shivetya thread starter macrumors 65816

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    My aunt is, she put me on to this article. The issue is, how long before other states jump on the bandwagon, let alone the Federal government?

    Crap stirring is an appropriate description considering the contents of some people's heads here :p
     
  7. yg17 macrumors G5

    yg17

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    #7
    Well, that's what happens when you elect a washed up actor with no political experience to run your state :rolleyes:

    Too bad they didn't elect Gary Coleman or the porn star. At least press conferences announcing that the state is broke would've been entertaining. Ahhnold is boring.
     
  8. iBlue macrumors Core

    iBlue

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    #8
    Holy hell, you replied! Hey, you've got some other threads too. ;)
    I don't know but the US is in some big debt (as are a lot of countries thanks to a bogus war, greedy financial institutions and other such bollocks) and that money is going to need to come from somewhere.

    I have a lot of family in California, I'm sure they're none too pleased but I bet their not outraged either.
     
  9. Zombie Acorn macrumors 65816

    Zombie Acorn

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  10. NT1440 macrumors G4

    NT1440

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    #10
    Any reason you haven't returned to your "let him out in 15 years" thread? :rolleyes:

    Anyway, all I can say is california ****ed up big time.
     
  11. rdowns macrumors Penryn

    rdowns

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    #11
    Why not? Anyone can adjust their withholding if they desire. Seems a reasonable solution to raise cash fast without imposing new taxes or fees.
     
  12. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #12
    Exactly, it shouldn't be the governments choice how you pay your taxes. If I want to pay a lump sum at the end of the year I should be able to.
     
  13. nbs2 macrumors 68030

    nbs2

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    I am curious to see if there will be "penalties" and interest paid back by the state. Here, the state is intentionally increasing withholdings above the effective tax rate for individual paychecks. This is being done with the specific intention of increasing fund that the state has access to at this time while depriving individuals of their "legal entitlement" to those same funds.

    When an individual has too many withholdings, they can be subject to penalties and interest. These penalties discourage individuals from declaring themselves Exempt or end-arounding with a significant number of withholdings. The trigger will vary from state to state, but the intention is to keep individuals from increasing funds that the individual has access to while depriving the state of its "legal entitlement" to those same funds.

    Besides, aren't the folks most affected by this going to be the folks that are least likely to understand the withholding process?
     
  14. Rodimus Prime macrumors G4

    Rodimus Prime

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    Here is food for though. This is what the future of the US government will be doing.

    At some point something has to give and California is an example of what happens when debt gets out of hand. What will happen when it comes time for the Government to pay back all the money they borrowed.
     
  15. leekohler macrumors G5

    leekohler

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    #15
    We'll have to pay it, won't we? But until we start talking about tax policy that will help us do that, we'll continue to slide downhill.
     
  16. NT1440 macrumors G4

    NT1440

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    #16
    What do you mean lee, surely tax cuts can get us out of our debt right? ;)
     
  17. erickkoch macrumors 6502a

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    #17
    Scary thought. I guess there's no point in leaving CA for another state if the problems of massive govt. debt just follow you wherever you go. Guess I'm screwed. :(
     
  18. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #18
    Move to texas.

    Theres no reason we should cover it, the people of California are seeing the "benefit" of their spending, if they want to have lower taxes they have one choice, lower spending.
     
  19. leekohler macrumors G5

    leekohler

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    #19
    Of course! ;) :rolleyes:

    I was referring to Rodimus' comment on the US in general. ;)
     
  20. obeygiant macrumors 68040

    obeygiant

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    Exactly, Spending our way out of debt is where its at.
     
  21. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #21
    I know when I max my credit cards that next one is a lifesaver.
     
  22. abijnk macrumors 68040

    abijnk

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    #22
    This won't help anything. Sure, they'll have the cash for now, and then when next tax season rolls around they'll be issuing more IOUs. We need a fundamental change in the spending in this state. Until then, I guess I'll be missing my $20 a month. :rolleyes: Sure, that doesn't sound like much, but when you consider that $20 is enough to get me to and from work for a week it really sucks.
     
  23. NT1440 macrumors G4

    NT1440

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    #23
    Yea, cuz I said that we should spend spend spend instead.:rolleyes:
     
  24. Rodimus Prime macrumors G4

    Rodimus Prime

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    CA tends to lead in examples of what the future is to hold.

    CA massive spending and not collecting enough taxes is what got them into this mess. And now they have to pay for it and low and behold. They cann't

    Well there seems to be no sign at all of the endless massive downward spending the the US government. When ask how things are going to be paid for people tend to get all defense and say we need *blank* health care being the big one right now but still it needs to be paid for.

    Cash for clunkers the more I look at it the more of an epic fail it was. There was an article in from the AP I read today that people who turn in a truck were 17 time more likely to buy a new truck. So of the people who turn in an Old F150 they were mostly like to buy a NEW F150. Talk about a fail in getting clunkers off the road. It gave no incentive to really buy more fuel efficient vehicles. Just buy well another gas guzzler with marginally better gas mileage.

    My worry right now is with the massive debt being built up this year (and safe to bet again next year) how is it going to be paid for. CA seems to be a good example of the US future. Get ready to stop making any money as every cent we make has to go back in Taxes
     
  25. iBlue macrumors Core

    iBlue

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    #25
    What government ever lowers their spending? They just want (and take) more and more and more. :-/
     

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