In the most recent election, California voters rejected borrowing to bridge the deficit.
The proposed budget undermined that public will. The government also is using accounting gimmicks to borrow money from taxpayers.
Those gimmicks will increase withheld taxes to more than what our personal tax liabilities warrant and will start withholding taxes from small businesses and independent contractors without regard to their expenses and profitability.
The withholding of taxes from businesses and independent contractors is even more insidious. By taking cash away from them, we are forcing them to scale back their activities under treacherous economic conditions.
Also, the added burden requires additional expenses. Both of these will result in lower tax receipts.
If next year’s tax receipts are lower than projected, this borrowing will be paid back with IOUs.
Our elected officials must heed our wishes. The budget must be balanced with a combination of spending cuts and increased taxes. Borrowing, in whatever clever form, should not be an option.
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