What Do Hawaii, North Carolina, New York, Illinois, and California Have In Common?

The Tax Foundation noted last week that several states will be delaying income tax refunds. Hawaii won’t be sending out refunds until July 1st; North Carolina will send them out “when they feel like it,” and New York Governor David Paterson wants to delay refunds for those who file in March. Meanwhile, Illinois is simply not paying its debts.

Meanwhile, it’s almost a certainty that California will be joining this list. Barring a miracle in the Legislature (the Democrats and Republicans and Governor Schwarzenegger coming to an agreement in the next few weeks), registered warrants (aka IOUs) will have to be sent out beginning in late March or early April. Controller John Chiang implied this when he said the state was running out of cash. Meanwhile, the Democrats in the legislature continue to pass big ticket programs (e.g. healthcare legislation) so it’s as if they’re living in dreamland.

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