Posted on 08/09/2009 4:51:50 AM PDT by TigerLikesRooster
right there's the problem...
The Phila. city schools are issuing IOU’s to vendors. Our family does business with the schools (musical instrument accessories) but we won’t do any business with them at this point unless we’re paid up front.
That isn’t necessarily a bad thing.
Is this Arnold’s fault, or the fault of the California voter?
OTOH, The state is claiming that the IOUs are a valid form payment for tax purposes, so it is illogical that it would be invalid to pay your California taxes with them.
So much for my plan to get rich on these things. If the state won't take them, they must not be worth the paper they are printed on. Glad I didn't buy any at 5% of par. I still might be willing to take a chance at about 1%. They might be framed collectibles some day.
Wow that’s a tough one. Suppose one of your competitors will do bussiness on those terms. When (if) good times return you’re out of a lucrative govt deal.
As conservatives, we should be on Calif’s side on this one. As a sovereign state, it should have a right under the constitution to hose folks. There is a reason states can’t file for bankruptcy protection.
And folks should bear the consequences of selling to an insolvent entity on credit.
Bump for later.
She has yet to receive any money so how can the State tax that???
What’s the big deal? All those small businesses can run right down to the bank and get a loan to cover their operating expenses, right? Shouldn’t be a problem with the booming economy.
Has this been confirmed? This article appears to be from an obscure website, and I haven’t seen any other articles asserting this.
http://news.yahoo.com/s/ap/20090730/ap_on_re_us/us_california_ious_2
California contractor paid with IOU sues the state
Wed Jul 29, 8:28 pm ET
SACRAMENTO, Calif. A vendor who provided 1,200 embroidered polo shirts and uniforms to a state-run youth camp and got paid with an IOU filed a lawsuit Wednesday against the state of California.
Nancy Baird, the owner of an EmbroidMe franchise in Paso Robles, sued state Controller John Chiang and state Treasurer Bill Lockyer in U.S. District Court in San Francisco.
That is wrong on so many levels.
In the end, the people are responsible. They elected the fools that are running the asylum. Maybe next year, they can rectify some of the problem.
IOW
California won’t accept the worthless crap IOUs it foists on vendors and taxpayers. I hope and prey they lose in court
I have to ask: Doesn’t $27,000 buy a whole trainload of polo shirts?
Has this been confirmed? This article appears to be from an obscure website, and I havent seen any other articles asserting this......
Go to google news and you will find many articles for “Nancy Baird” who is suing
“Uh Duh!! Like they are like worthless dude!”
I’ll buy all you have for 50 cents on the dollar!!!
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