So what happens if California files Bankruptcy?

[Niners fan]

Originally Posted by NorthernCalifornia

prop 13

California already has among the highest sales taxes and income taxes in the nation. Repeal Prop 13 and it will soon have among the highest property taxes in the nation too. That's not the way to rebuild an economy.

California has a spending problem compounded by free-spending politicians who refuse to make tough choices.

[mysticaltyger]

Originally Posted by Lovehound

California won't file for bankruptcy. I don't think that's even possible.

Eventually, and probably rather soon, the Democrats and Republicans will sort it out, deals will be made, and the new budget will be signed.

In the mean time some state services will go dark, some state employees will get reduced wages or temporary layoffs, and the taxpayers will be inconvenienced by the unavailability or postponement of some services or in some cases longer lines.

Oh yeah, and if you're due a state tax refund it will be delayed until the state legislature sorts it out.

My bet is that the heat will be turned up quite a lot beginning next week (Monday, February 2nd) and I expect it will be settled before the end of the month.

It's definitely possible for a state to file for bankruptcy. Not likely in this case, although we are headed there over the long term if current trends continue (CA's bond rating was just lowered to a few notches above "junk" by Fitch ratings).

[mysticaltyger]

Originally Posted by jram36

i left california and hell i left usa, i live in mexico. i feel sheltered from all that is evil in usa. your laws and taking of constitutional rights that are making the poor suffer. hah i'd rather catch swine flu if it where as serious as said to be wich its not. come to mexico and see. im caucasion californian but not anymore. usa can go to hell. burn devil burn

Yeah, like the poor and the middle class live so much better in Mexico, right?

I hope your Spanish is better than your English.