I understand the absurdity of this action ..... just wonder if citizens can send IOU's to the government if we are a little strapped for cash? Ha - try it and the IRS will have you in jail before you could mail the IOU!!
California is the bell-weather state - it starts here and spreads east ..... wonder when the federal government starts this??
Calif. tax refunds to be delayed starting Feb. 1
Jan 16, 3:40 PM (ET)
SACRAMENTO, Calif. (AP) - California's controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money.
Controller John Chiang said Friday he must delay $3.7 billion in payments next month because lawmakers have failed to address California's growing deficit.
With a $41.6 billion shortfall over the next year-and-a-half, the state is on the brink of issuing IOUs.
Chiang says his office must continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs.
A severe drop in revenue has left the state's main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors; those options are no longer available.