Of all the states, California is the state most closely associated with running a budget that ends up either always posting a deficit or having various discrepancies in its revenue. However, a special commission has been designed that will recommend a complete overhaul of California’s ancient tax system, a development that should bring plenty of financial relief to everyone involved.
 
Financial experts throughout California have long agreed that the state relies too heavily on taxing the wealthy and on the stock market while neglecting to focus on getting taxes from the service sector. The special commission, which was created by Gov. …read more

When California’s government ran out of cash to give to rightful income tax return recipients, it decided to instead issue thousands of IOUs that would give California time to recuperate its assets. Bank of America and Wells Fargo are now among the banks that will honor these IOUs.
Bank of America will begin accepting IOUs on September 9, immediately honoring the face value of the IOU, and interest will be paid thirty days later. No IOUs will be accepted after October 9, giving the over 100,000 Californian Bank of America customers a month to submit their IOUs. The process, though, has …read more

In a move that marks Japanese automaker Toyota’s very first plant closure, either in Japan or abroad, the company has decided to shut down a Fremont, California plant known as NUMMI. Toyota once ran the plant as a joint venture with General Motors, but when GM had to pull out of the deal, Toyota decided that it could not afford to keep the plant open alone.
 
New United Motor Manufacturing Inc., which produces Toyota Corolla cars and Tacoma pickups, will shut down in March 2010. According to Toyota, which had previously vowed not to close down any of its plants, the …read more

Come September 4th, the struggling state of California should finally have enough money to not have to issue IOUs to those who should instead be receiving income tax returns. The news comes from Controller John Chiang, who cited current cash-flow projections as showing that California needs only to borrow $10.5 billion for the whole year and $1.5 billion by August 28 to meet its needs.
 
Since July 2, California has issued 327,000 IOUs to its citizens, in all totaling around $1.95 billion. This was the second time that the Golden State was forced to issue IOUs, the first time occurring in …read more

California residents still waiting for their income tax returns may have already received their IOU as the debt-ridden state scrambles to get 29,000 IOUs, worth more than $53 million in total, into the hands of those owed. So far, California has been unable to negotiate any solution to even begin to solve the state’s massive budget deficit.
The IOUs will be issued at a 3.75 percent interest rate and residents will be able to take them to cooperating banks to receive their money. Not every Californian financial institution will accept the IOUs, but major banks like Bank of America and Wells …read more

If you are a Californian driving or holding onto an ancient, high-polluting vehicle, you could get paid a nice chunk of cash to finally get rid of the thing. State regulators have expanded an incentives program today that offers Californians up to $4,000 if they turn in their old cars and purchase cleaner vehicles.
Although this program seems similar to the “cash for clunkers” law that Obama signed earlier this week, it differs in that California is specifically targeting cars that are responsible for producing excessive amounts of smog.
According to the regulators responsible for the program, over 300,000 Californians own cars …read more

Five California banks have received orders from the Federal Deposit Insurance Corp. to make a variety of changes. These orders come off the back of increasing public pressure for transparent business practices, especially in the wake of the economic crisis.
 
California has been hit especially hard by the softening economy and this development emphasizes the fact that the troubled state will have to make concessions. The orders from the FDIC include mandates for stricter lending policies, different management, and even new capital.
 
Of the 24 such orders issued across the country, California received about a fifth of them, but the effected banks …read more

A new study by the California Budget Project indicates that more Californians are working later in life, especially women. No surprise to many of use who have forged new careers over age 45.

A few of the other key points of the survey include:
* More Californians, men and women, are working longer. Last year, 63 percent of people age 55 to 64 were employed, up from 58 percent in 2000.
* Older residents, 65 to 69, are still working, 29.7 percent last year, compared to 22 percent in 2000.
* About half of women are still working, a figure …read more

According to a TIME article, marijuana could be the answer to California’s economic problems. Democratic state assemblyman Tom Ammiano introduced legislation that legalizes the drug, saying that it could mean billions in revenue for the state every year.
Actually, even without being legal, weed is the biggest cash crop in California, accounting for $14 billion every year. The largest legal agricultural product – dairy – only brings in about $7.3 billion a year. U.S. Attorney General Eric Holder announced recently that states may soon be able to set their own laws on marijuana. California could open the floodgates for other states …read more

Homeowners in the Miami-Fort Lauderdale-Miami Beach area spent a whopping 58 percent of their income on mortgage payments. That’s an amazing figure. Ideally, a home should not suck up more than 30 percent of its owner’s income. I can’t imagine spending more than half of my income on mortgage payments.