Last week I was listening to a morning radio broadcast nonchalantly claim that the state of the economy was better than it was a year ago today, and that America was quite possibly out of the recession.
Yet I look around me…and things aren’t so hot.
The state of California’s economy is in disarray, especially after the state government approved a 10 percent income tax increase, effective immediately. Sure, California officials claim that residents will receive this money when they file their taxes next spring, but I hear rumors that the state will pretty much have to deliver IOU’s to nearly half the population.
Oh man I’m looking forward to this! Angelinos, please file your taxes early if you want to see a single penny from the government next summer.
Economic pressures have long plagued California, and now it seems like other states are facing fiscal crisis as well – such as my former home, Illinois.
California’s unemployment rate for September was an astronomical 12.2%, and Illinois was not far behind with a 10.5%. California faces a budget gap of approximately $7 Billion, which means that the spending cuts in 2010 will effect nearly every department.
So I call out to friends back in Chicagoland. If you plan on coming out to LA, be ready. I’m not saying it is a bad idea. (After all, Illinois is not doing much better)...But be very safe with your money, and for that matter, start saving now.
(sources include CNNmoney, Fox news, Los Angeles Times)
DM
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