California's Fraud and Con Game Against the People - Issuing IOU's, which Banks don't Acknowledge and making People Pay Taxes on Them

California is committing a Huge Con and Fraud Against the People of the State. They are issuing IOU's to people, which banks do not acknowledge nor accept as Real Money. BUT the govt. is making the Businesses and People they issue those (not real money) IOU's to pay Taxes on Money they Never Received!

If any person or business committed Fraud like that - where they give people a worthless piece of paper and then told those people - they then had to give them back a percentage of the worthless paper - they would be turned in and arrested. They would be convicted by the courts of a Con and Fraud Scheme.

How can California actually expect people to pay taxes on money they did not receive?

Those businesses are hurting in the first place, I would bet, due to laying out their own money to do business with the state and yet not get paid.

link to information :
http://www.courthousenews.com/2009/08/04/California_Won_t_Accept_Its_Own_IOUs.htm

SAN FRANCISCO (CN) - Small businesses that received $682 million in IOUs from the state say California expects them to pay taxes on the worthless scraps of paper, but refuses to accept its own IOUs to pay debts or taxes. The vendors' federal class action claims the state is trying to balance its budget on their backs.

Lead plaintiff Nancy Baird filled her contract with California to provide embroidered polo shirts to a youth camp run by the National Guard, but never was paid the $27,000 she was owed. She says California "paid" her with an IOU that two banks refused to accept - yet she had to pay California sales tax on the so-called "sale" of the uniforms.

The class consists mostly of small business owners, many of whom rely on income from government contracts to keep afloat. They say California has used them as "suckers" as it looks for a way to bankroll its operations while avoiding its own financial obligations. "Instead of seeking funds through proper channels, the State has created a nightmare," the class says. "Many of these businesses will not survive if they are required to wait until October 2009 to have these forced IOUs redeemed by the State."

The class claims the state is violating the Fifth and Fourteenth Amendments. It demands that California be ordered to honor its own IOUs, plus interest. They are represented by William Audet.