Some states may delay paying tax refunds again this year. Taxpayers should call them the “Check In the Mail” States.
Last year Kansas, North Carolina, California and Missouri delayed tax refunds. Taxpayers were not happy about it. Tax refund delays are another sign of government mismanagement. In response to last years fiasco, Missouri state house legislators this week passed a bill that if enacted will shorten the time period that the state can withhold payment without interest. Missouri had to use stimulus money to pay its tax refunds. See: Missouri State House Approves Quicker Refunds .
This year New York, Kansas, Iowa and Hawaii have already announced they may have to delay payments. Taxpayers, who are entitled to refunds in these states, will unfortunately suffer.
Here are a few of the headlines and links to the state stories.
Forbes recently published its “Special Report: The Global Debt Bomb.” In one of its pieces, United States of Debt , it ranks states according to financial health. The metrics Forbes looked at for each state when building its ranking included unfunded pension liabilities, changes in tax revenue, credit agency ratings, debt as a percentage of Gross State Product, debt per capita, growth expectations for employment and the state economy, net migrations and a moocher ratio that compares government employees, pension burdens and Medicaid enrollees to private-sector employment.
The Worst States for Debt Trouble, according to Forbes, are Illinois, New York, Connecticut, California and New Jersey.
The States with the least Debt Problems are Utah, New Hampshire, Nebraska, Texas and Virginia. All states have significantly lower debt per capita than the Worst States. The Best States also have lower unemployment than the U.S. average of 9.7% and lower than the Worst States with Debt Problems. The Best States for Jobs will typically have better government management of debt.
Forbes also ran an analysis that shows that the states with the Worst Debt and Financial Problems are blue states i.e. states controlled by Democrats. The piece attributed political unions and big spending by Democrats as the cause of the deepest fiscal holes.
See Political Litmus Test: Bluest States Spilling The Most Red Ink