Small California businesses that have received $682 million in IOUs from the state say they have been told by the state that they must still pay taxes on the sales. However, the state of California has informed the business community that it will not accept those IOU's from the businesses as payment for sales taxes. The millions of vendors that do business with the state so it can continue to function have filed a class action suit, claiming the state is trying to balance its budget upon their backs.
One of the plaintiffs, a business that supplies embroidered polo shirts to a youth camp run by the National Guard, says she is owed $27,000. Nancy Baird's company fulfilled its contract with the state and she now says the state paid her with an IOU that two banks have refused to accept. Like Nancy, many other small business owners count on the income they receive from the state to stay afloat, and have been used as suckers by the state. These small entrepreneurs are claiming in a class action lawsuit that they are being forced to pay taxes without being reimbursed by the state that bankrolls its operations while avoiding financial obligations to others.
What we have here is the state of California refusing to play by it's own rules and seeking funds through improper channels. They've created a nightmare for the public they are supposed to serve. Many of these businesses cannot survive if they must wait until October to have the IOU's redeemed by the State. From what I see this kind of treatment violates the Fifth and Fourteenth Amendments. The state of California should be ordered by the courts to honor its own IOU's and with interest. The small businesses sales taxes should be deferred until the state can pay the IOU's.
It seems to me that those who love big governments have become almost completely tone deaf in their obsession with the growth of this government. This particular case strikes me as totally absurd from several points of view. To force a business to pay taxes on Monopoly money is beyond stupid, it's just unconscionable. This whole situation just illustrates vividly and unambiguously that the government is completely unconcerned about the effects, or fairness of its policies. All the state cares about is getting its hands on more money and the consequences be damned.
Even though this is happening in the state of California, which in my opinion has the biggest idiots running it, you will see these issues do effect the federal government. While many just lump all levels of government into one bucket, the enormous GDP of the state of California will inevitably effect the whole country.
Unfortunately the disaster in California has now become the theater of the absurd. What with housing prices crashing everywhere, and local governments continuing their attempt to collect at the same value rates as before, or as we see in some cities actually raising taxes, California is ready to burn, and I do not mean the forests. We have reached critical mass in this state and the politicians do not even realize it, or they would not be thinking of new ways to get more money. Logic says it is time to back off, but the socialists in power are moving forward with their desire to control the movement of every penny that exists in this state.
The only question that remains is how the state of California will pay their thousands of lawyers who are lined up to defend the indefensible. Unfortunately, history is on the side of the sate, as I believe the courts will again agree with the state and its high paid entourage of lawyers.God help us, the government is controlled by idiots!