Is there an American politician worse than Arnold Schwarzenegger? I mean if there is, please tell me, but signs so far point to no. Now granted, he has a lot of help from his fellow idiots in the state legislature, but as the de facto head of the state, he takes most of the blame for its destruction.
Ah-nuld’s latest “big idea?” He wants to collect taxes on IOU’s awarded to small businesses. Yeah, you read that correctly. California wants people to pay taxes on monies they didn’t receive!
Oh, and for those of you who say I am not fair in my attacks, Governor Schwarzenegger is a big, beefy Republican.
Bruce McQuain calls this the theater of the absurd, but that implies humor and entertainment value. Unfortunately, California’s attempt to get hard cash in taxes based on payments to businesses it made with imaginary money is neither humorous or entertaining. It does demonstrate the complete disconnect from reality suffered by the state’s political class in Sacramento:
Oh, you might want to have the duct tape handy before you read any further. Just sayin’.
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.
California wants Baird and her colleagues to pay taxes on money she never received. The state of California hasn’t paid her the money they owe her, but they want her to pay the money she owes them. In any other situation, a court would laugh this one right out the door, and perhaps the federal court will do so. Baird would have no chance at all in a state court. (H/T – Hot Air)
I have three words for Ms. Baird: Torches. And. Pitchforks.