absolutely
Posted on 08/09/2009 4:51:50 AM PDT by TigerLikesRooster
California Won't Accept Its Own IOUs
By MARIA DINZEO
SAN FRANCISCO (CN) - Small businesses that received $682 million in IOUs from the state say California expects them to pay taxes on the worthless scraps of paper, but refuses to accept its own IOUs to pay debts or taxes. The vendors' federal class action claims the state is trying to balance its budget on their backs.
Lead plaintiff Nancy Baird filled her contract with California to provide embroidered polo shirts to a youth camp run by the National Guard, but never was paid the $27,000 she was owed. She says California "paid" her with an IOU that two banks refused to accept - yet she had to pay California sales tax on the so-called "sale" of the uniforms.
The class consists mostly of small business owners, many of whom rely on income from government contracts to keep afloat. They say California has used them as "suckers" as it looks for a way to bankroll its operations while avoiding its own financial obligations.
(Excerpt) Read more at courthousenews.com ...
For dishonesty, California is insisting the vendors take something for payment that the state won't take for payment. You know California is paying some of it's bills, so how much you want to bet that the people getting paid are politically connected?
Remember when Hillary found all the "abnormalities" in the WH travel office? This would be an easy ploy for California to run vendors out of business, and advance businesses that will contribute politically to the "right" causes.
You know they're picking out which vendors they pay, and you know they're doing it because of political affiliation.
I think the most vulnerable businesses (those who would go out of business without government customers, and who don't have "connections") were told "accept IOUs, or be blacklisted from doing business with California agencies"
"I'm like, 'Why not?' 'Well, there's a stipulation you have to be a customer for a year and you've only been here nine months,' and I'm like, 'Are you kidding me?'" Baird recalled. "I was under so much stress because all of this stuff that I just sat in my car and cried."
I wonder just whose stipulation that might be; I have read the guidance from the Fed and from the California authorities, and I don't believe there was anything like a suggested requirement that someone be a customer for a year before honoring these instruments is mentioned.
Good thought, didn’t the federal government just do almost that very thing to car dealership owners?
Various counties and municipalities issued scrip during the Depression. I did a quick look and the scrip I saw was also good for paying debts and taxes to the entity that issued it. So California is operating a shameful rip-off compared to what impoverished governments did during the 1930’s
Wow...even the New York times is covering Nancy Baird and her mini tax and IOU revolt
We don’t really have competitors as it’s a very specialized niche and also we’re not talking a lot of money, or else what you wrote would definitely require thought.
absolutely
“I have to ask: Doesn’t $27,000 buy a whole trainload of polo shirts?”
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Of course not, you could probably haul that many in a pickup truck if they are good quality. Even the very cheapest wouldn’t nearly load an eighteen wheel truck. If they are the very finest you might come close to loading them into a large car trunk.
Depends on which shirt and how many stitches are in the design, and the number of locations emb. But a unit cost of 24.00 should have been a nice profit.
The embroidered polo shirts I got at the Dollar Store are really nice — thick material and they don’t come apart in the wash. I guess they were a lot that the original buyer didn’t pay for or take delivery. The embroidery is in Mandarin, I think, and I’ve always taken a chance with that lol.
Depends on what mode of accounting they use. Cash based accounting only goes on the books when you get paid. Accrual based accounting goes on the books when you receive the order. So the income would have to be shown in the quarter the order was made, irrespective of payment. Now if they never pay you can add that as lost income in a later quarter. PS - I am not a tax attorney and not an accountant. Only play one in reality.
with declare that
Pay a tax liability or tax deposit with your registered warrant
We will accept registered warrants that are not yet redeemable for full face value towards the payment of tax liabilities.
Endorse the back of the registered warrant with the phrase "Pay to the order of Franchise Tax Board" and your signature. Mail the registered warrant with an FTB payment voucher for the payment type you want to pay.
In order to get interest on your registered warrant, you must hold the warrant until it is redeemable. Contact your financial institution for information about its policy on paying interest.
(http://www.ftb.ca.gov/aboutFTB/newsroom/Registered_Warrants.shtml)
Her $27,000 registered warrant is probably well in excess of her tax liabilities but I would hope that California should be willing to cut her new warrants (or, better, of course, a real check) for the balance.
Just great, a reality accountant. You wouldn’t happen to know a teevee accountant who could help understand this would you?
(Just kidding. Thanks)
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