As We See It: Taxation with representation

Borrowing money from taxpayers is just one of the numerous examples of smoke and mirrors budgeting, shifting the timing of revenue and expenditures to make the current budget year seem balanced when it is anything but. Unfortunately such practices were not uncommon before the economic downturn. Other prime examples of accounting gimmicks are the shifting of government paychecks from the last day of one fiscal year into the first day of the next and borrowing property tax revenues from local governments. Of course if a journalist (imagining a world where there are such people) wanted to give their readers an accurate impression of the state's budget, they could simply disaggregate budgeting moves by their substance, and report the functional deficit in budget.

The LAO estimates that state spending in 2009–10 will be $20 billion or 15 percent less than it was in 2007–08 but that federal funds spending will increase by $38 billion or 68 percent more in the same period. But the Democrats in Congress also used this economic emergency to push some of its long held agendas and so the money isn't simply available to supplant the downturn in state and local revenues. That said a large part of the stimulus spending is about saving the jobs of that party's main constituency, government employees.

Not much to lose for the government in adding to the interest-free loan they already get through withholdings. Government doesn't pay a dime of interest on excess it withholds, but if someone paying estimated taxes instead of payroll withholdings underpays at all, they owe the balance plus 3.571% interest. I believe in Nevada, that's what's know as the casino's cut.

This reminds me of the the reverse gimmick Bush Sr. tried back in 1991, allowing people to overstate their dependent exemptions in order to leave more money in their paychecks to stimulate the economy. Then people got their fannies kicked the following April by owing higher tax payments, and voted Bush out. Smoke and mirrors only work so long.

And the shell games continue by our Democrat controlled Assembly and Senate who are completely irresponsible when it comes to fiscally conservate responsible spending!

Our legislators are tax whores, they'll do anything to squeeze more money out of the populace... their reelection, in most cases, depends on continuing to push money toward the union and special-interest benefactors that prop them up financially. Looking out for the silent majority is the last thing on their minds...

... and now they want us to sign off on $11 billion worth of bonds for water diversion to the south, AND whatever cute little pet projects get hidden in the bill.

One solution would be to repeal withholding and let taxpayers feel the horror of one large tax payment.It might sober up the "repeal the 2/3 requirement" bunch. And it just might cause people to think before sending the tax and spend crowd to Sacramento.

don't forget that CA held off on paying out refunds in tax year 2009 (for those who were owed money and filed early). they stiffed me for 2000 owed this year.

Don't let them have it -- jack up your withholding and be prepared to owe THEM money come april.

It's so very easy to blame others. We vote for billions of dollars in bond issues every election. As a whole we are no better than the politicians we complain about.

How is this going to work long term, or even short term for this measure. The state is going to get a little bit of extra money. It still won't do much to balance the budget or pay off whatever the state already had to borrow. But just watch. Some politician will see this 'windfall' as extra money to fund yet another wasteful project, not realizing this money is promised to be paid back. Furlough the politicians until just around budget time and demand that they all come in well prepared with a couple of sandwiches and a thermos and a working plan.I am so disgusted by this sneaky way to get around voter approval. To give BS a different name doesn't turn it into gold, it's still BS.