Pass the popcorn, if you can afford the tax on it!
Taxes paid by local Californians are being fought over by state, county, and local governments as we working stiffs continue to feed the fire of the economy.
It would be funny if were their money they were fighting over, but as usual it’s ours.
The state of California, in its debt hole, says they’ll be “delaying” payments to county and local governments statewide;
As of Sunday, the state controller had delayed more than $100 million in health and human services payments to [Los Angeles] county for at least a month. Such delays are also affecting the rest of the state’s 57 counties. Locally, county leaders have so far opted to cover the delayed state payments with reserves.
In response, Los Angeles County, also with a huge Democrat majority, is considering retaliation in the form of withholding taxes they normally forward to the state;
Los Angeles County supervisors threatened Tuesday to withhold county revenues from the state to pay for local health and social services, a move they say they have been forced to consider because Sacramento’s budget stalemate has left them $105.6 million in the hole.
“We’re declaring our own Boston Tea Party,” Supervisor Gloria Molina said during Tuesday’s board meeting, adding that refusing to turn over the money to state lawmakers “will make their pain more acute.”
A spokesman for Gov. Arnold Schwarzenegger warned that such a game can be played both ways. If L.A. County holds on to the state’s share of taxes, said H.D. Palmer, a spokesman for the state Department of Finance, the state can withhold an equal share of the county’s sales tax revenues.
“The state has the ability to compensate for any action that might be taken on the local level,” Palmer said.
The state of California as a result of its massive overspending and taxing when things were booming now find themselves in the red and rapidly spiraling deeper into debt as things have slowed to a crawl.
The Democrat majority, beholden to its union cash base and lower income entitlement voters, are afraid to do anything responsible that may upset their power applecart, so have reached to more taxes as a quick fix to their addiction to overspending, the same “tax the rich” mantra seen everywhere.
Most Republicans in the California legislature are still holding firm to their “No Tax” pledge, but there are cracks in the wall.