Paying taxes with California IOUs?

July 8, 2009

From the AP via the Sacramento Bee, it looks like a lawmaker is proposing that California follow the Argentine model.

From AP:

State vendors and contractors could use their government-issued IOUs to pay state taxes, fees and liens under a bill approved by an Assembly committee.

The Business and Professions Committee unanimously passed the bill by Assemblyman Joel Anderson during its first legislative hearing Tuesday. The bill requires the state to accept its own IOUs as payment for money owed to the government.

This would make the IOUs look and feel much more like currency.  As things stand, the only institutions accepting the IOUs are banks, but the majors like Bank of America, Chase and Wells Fargo have said they will only deposit them for customers until Friday.

It’s doubtful that this bill will gain much traction, though, since it would undermine the governor’s resolve to pressure lawmakers to close the $26.3 billion budget gap.

All of this is academic of course if those promised the IOUs don’t get them. The NYT’s reports that many vendors promised warrants haven’t received them yet.


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Let’s all send the IRS and our state governments IOU’s for taxes due, stating that we have personal budget shortfalls and that they can use the IOU’s to pay federal benefits. Actually, we could even send IOU’s to pay for our home utility services too, since they are mostly government controlled. California is doing nothing more than attempting to develop their own private monetary system. The sooner Americans figure this out and stop this, the better the economic recovery will be. The newly coined slogan of “Live Within Your Means”, for all companies, indviduals, and certainly the government, is perfect.

Posted by Frank | Report as abusive

California would do well if we did have our own publicly held State Central Bank. It is the private banking system that gave us worthless paper money and is charging We the People interest on loans created from nothing. Now that move would be something Arnold could crow about!