Taxable Talk

While interest on underpayments to the IRS will increase to 6% from 5% in the third quarter, interest on underpayments to California will fall from 7% to 5% as of January 1st. Corporate underpayment interest in California will fall from 3% to 2% as of January 1st.

Another week and there's absolutely no progress on the California budget front. Republicans won't vote for anything with a tax increase and Democrats won't vote for anything without a tax increase. The latest Republican proposal (which has major budget cuts and some borrowing from the state lottery) was derided by Assembly Speaker Karen Bass (D-Los Angeles) as a "...blueprint for economic disaster."

Needless to say, I don't expect any progress in the near future. Meanwhile, payments to state vendors will likely stop sometime in late September.