Just when you thought there was no way out of the fiscal problems facing tax and spend California along comes a champion idea.
Ever hear of “registered warrants?” This sends a chill up my leg.
The State of California, the land of income, sales, property, and hundreds of other revenue structure fixing taxes, is billions in the red with billions more in obligations it can never, ever meet using a real world scenario.
Democrats control the California Legislature. People trust Democrats because they have the best of intentions and besides, they are good at taking other people’s money and spreading the wealth around.
The California Republicans do not even have enough clout to uphold the 2/3rds vote requirement to raise taxes. The Democrats are going to try to raise taxes without following the California Constitution (What! Do they think they are Supreme Court Justices all of a sudden?).
Enter the like really koool (Ca. spelling.) idea of bringing back “registered warrants,” also known in business as IOU’s.
Here is the great part!
When the State of California runs out of money it can simply print up registered warrants at Kinko’s, pay them with a registered warrant, and mail the rest of the registered warrants out to the thousands of state workers and retirees.
Back in 1992 when Governor Pete Wilson did this, are you ready - banks cashed them!!!! Oh mother of all great inventions!
Now you have a way for a STATE to, in essence, print money - a moonbat idea if ever I heard one. And it’s all perfectly legal because government is doing it.
See, now bankruptcy of a state isn’t all that bad after all - until the bank’s money runs out.