- Days left
Things are about to get a lot hotter in California. In response to political deadlock over its $42 billion deficit, State Controller John Chiang announced today that he would suspend some $3.7 billion in payments, including tax refunds, starting Feb. 1.

"Let me make this point," Chiang told reporters at a press conference in Sacramento, the state capital. "Delaying these payments will hurt real people, many of whom are barely hanging on in these tight times.

The payments include $2 billion in tax refunds owed taxpayers, vendor payments, welfare checks and student grants. If it comes to this, the state will issue IOUs instead of checks.

Great. Wonder if landlords or the grocery store takes IOUs?
Guess what happens when workers, students and the needy don't get money they're due? Everybody retrenches, nobody spends, and the economy spirals downward in an ever-quickening funnel. At that point the only folks buying cars or houses are well-paid politicians (legislators in California earn $116,000 in base salary, plus a $173 per diem for daily expenses) or Hollywood movie stars, like California governor Arnold "da Gubernator" Scwarzenegger.

At this point, as a third-generation Californian, I have this to say: Dudes! Like, where's OUR bailout?

California is the eighth -largest economy in the world. As California goes, so goes the rest of the nation. It's in nobody's best interest if we go belly up. In other words, "we're too big to fail."

Yes, we've mismanaged our finances appallingly. Yes, we've spent on the wrong things and let our infrastructure go to hell. True, our political process is mired in gridlock and partisanship. But is that so very different from what the leaders of Citigroup and Bank of America, GM and AIG have done? Not at all!

So why not ask for a bailout? Our deficit is only $42 billion; small change compared to what our government is forking over to failed banks, automobile and insurance companies. And as long as Uncle Sam has the printing presses working overtime.

Save our butts, guys, and all of us here in the most populous state in the union will be ever so, you know, like totally grateful. Come on out from that frigid East Coast cold and chill SoCal style (it's been 85 degrees here all week!). Girls, much like the ones pictured, are happy to show you around. Just bring your checkbook.

Increase your money and finance knowledge from home

Goal Setting

Want to succeed? Then you need goals!

View Course »

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

TurboTax Articles

Deducting Mortgage Interest FAQs

If you're a homeowner, you probably qualify for a deduction on your home mortgage interest. The tax deduction also applies if you pay interest on a condominium, cooperative, mobile home, boat or recreational vehicle used as a residence.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

Fatten Your Paycheck and Still Get a Tax Refund

If you usually get a tax refund, but would like to start putting more money in your pocket every month, we can help. Yes, you still have to fill out a W-4 form. But we've developed a quick and easy guide to assist you.

Add a Comment

*0 / 3000 Character Maximum