California is broke … financially fried. The Golden State has spent every last dime it has, and more. Spending has out paced revenues for so long the state simply doesn’t have the cash to pay its debts. The State Controller could begin issuing IOUs in the very near future. And California will go from the frying pan to the fire.
Instead of cashable checks, the state will send its creditors registered warrants (A.K.A. “IOUs”) stating that California owes them money and will pay at some later date.
That means that hospitals, doctors, nurses, dentists, technicians, construction companies, laborers, school districts, counties, cities… every person, business and organization that is owed money from the state will be forced to take an IOU and find some other way to pay their own bills.
State law requires your business to accept the IOU as full payment and as such you will have to pay taxes on the income just as if you had been paid in real money!