California is broke. As in, no money, honey.
State Controller John Chiang announced today that his office would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state’s cash crisis.
Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state’s nearly $42-billion budget deficit. More than half of those payments are tax refunds.
This is what happens when a government spends more than it takes in via tax revenue. California is currently running a mammoth deficit – but a mere pittance compared to the spending spree Washington Democrats are planning.
Who really thinks the outcome of the Congressional spree will be different from that of California? Go ahead, raise your hand.
Then slap yourself with it.
You cannot spend your way out of a budget deficit. Yes, the Federal government can print money – but that does not negate the reality. If the economy is in a hole, the worst thing you can do is keep digging. Yet that is exactly what is being pushed by Democrats right now. Spending money we don’t have to take care of their special interests.
That has worked so very well in California, hasn’t it?
My good heavenly days, Gaius! Are you suggesting that Saint Obama may not save the USA and the planet? Is Saint Obama not omniscient and omnipotent?
May I suggest that it is a gargantuan debt?
The entire budget of Argentina is $62B. California budget is $143B. Austria, the Governator’s birth land, has a national budget of $180B.
When are people going to realize that things are out of control there?
Thanks to Ahnauld the GOP will get the blame for California’s meltdown.
This is not good news for the country. Either California will ask for and receive a ridiculous federal hand-out or they will lead the country into the abyss.
I am surprised they are not issuing carbon credits in lieu of tax refunds.
THe problem in CA is that the Democratic majority in the State house is entirely owned by the Public Employee unions. No change is possible as it would open the floodgates. Most states have this problem, but where they are majority or supermajority Dem (like here in CT) it is becoming catastrophic.