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California demands income tax before due date

california goldrush bankruptcy

“I just picked up tax documents from my CPA. California require me to pay 30% of my estimated tax for the year on 04/15/10 and another 50% by 06-15-10. The balance of 20% is due on 01-15-11.”

California’s debt situation is an example of where it should be made illegal or unconstitutional for a government to borrow money in properous or even normal times. The reason individuals borrow is because we’re mortal — we want to enjoy our big house before we actually can afford it, but a government is supposed to persist indefinitely, so any borrowing doesn’t make sense.

california budget deficit to 2014

While it might sound good to “leverage” money, the reality is that in good times you should be saving for bad times, not extending your debt further. Just like individuals who get in trouble with credit cards, government borrowing doesn’t really ever get you ahead only farther and farther behind. Anyway, they should make government borrowing illegal so that budgets must be balanced and debts must be repaid — then the tough conversations can happen without politicial fear to discuss these honestly.

Californian politicians all stand there smiling like they have actually accomplished something. It’s pathetic. Republican (not traditional republicanism) “spend without regard to debt, because debt doesn’t matter” ideology is driving this state into the ground. On the other vein, Democrats are not doing any better. They want to “preserve the safety net” (more like a fish net now with all the illegals). The lavish and extensive safety net is what got them into these problems in the first place. You cannot reward laziness. People have said that for decades, but nobody believed them because it never seemed to matter. Now it matters and they are so blind to the fact that it is the root cause of their problems that no actual solution is logically possible.

This is all intentional,the plans the CFR has for the USA and the world are NOT being wealthy and democratic. Henry Kissinger a CFR member is pushing an agenda called the [IIGG] which stands for International Institutions and Global Governance Program and Global has a good story on it.

California Delays Payments, Ponders IOUs Again, Demands 80% of Income Tax Paid Before It’s Even Earned

By Global Economic Analysis Blog by Mish

Tactics in California to shore up its municipal bond rating are quite humorous. Supposedly, by delaying payments to schools, California can boost confidence in its bonds.

Please consider this sure-fire confidence booster: California Passes Bill to Guard Cash as Bond Delayed.

California’s Assembly passed a bill allowing it to delay payments to programs including schools to avoid running out of cash, a move aimed at boosting confidence in bonds sold by the most-populous U.S. state.

The passage comes a day after Treasurer Bill Lockyer told lawmakers the bill was needed to send a signal to investors that California is taking steps to adequately manage its cash as it faces budget deficits through June 2011. Lockyer postponed a $2 billion sale that was initially scheduled for next week.

Assemblywoman Noreen Evans, the Democrat who chairs the budget committee, said the bill was needed so the state can return to the bond market to finance public projects that provide a jolt to the economy.
California Demands Income Tax Payments In Advance

Reader “Paul” just pinged me this news affecting business owners and self-employed contractors.

Hi Mish

I just picked up tax documents from my CPA. California require me to pay 30% of my estimated tax for the year on 04/15/10 and another 50% by 06-15-10. The balance of 20% is due on 01-15-11.

They want 80% of my annual estimate after 6 months, taxing me on money I have yet to earn for the year.

Only in La-La Land could one think these actions should impress the bond market. Then again, the stock market soared mid-day after Bernanke repeated for the 40th time that he was not hiking soon. So hey, who knows? You can find the full article from Mish’s blog

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