Today’s Commentary: Sunday California… Some Simple Tax Advice
As media stories increase regarding the State of California potentially issuing IOUs in coming months, many astute reporters seem to have completely missed a significant point.
News references have consistently lumped possible IOUs for State employees, vendors, taxpayers, and social services such as student aid, mental health and other welfare programs into the same basket. An IOU is an IOU, apparently.
However, an important distinction exists that simply should not be ignored in this “horn of un-plenty” situation. An IOU for a State program is quite different than one for a tax refund.
Put aside for a moment the debate over whether many of the services being provided by the State should be provided by government at all, as well as the inefficiency with which California administers its programs. (Remember those “boxes,” Governor?) Just for now, place on the nearest shelf the question of whether our taxes are currently too high.
In the case of IOUs going out instead of checks, in nearly every instance it means… Read More