by: Steve Frank
Please mark January 1, 2013 on your calendar. That will be an historic day for the State of California.
Unless things change, President Obama will give us a $494 billion tax increase, nationwide. That day ends the Bush tax cuts, the AMT patch and starts the massive, first stage, of Obamacare tax increases.
In California, that will be the first day of the ten billion dollar per year transfer of funds from one business to another, with billions also going to government, for the scam of the century, “Cap and Trade”. This does not clean one little bit of our air, just moves the dirty air around. That is ten billion.
Then, if passed, that will be the first day of the Brown/union $10 billion per year tax increase. If it passes, families and businesses in California will transfer $10 billion a year to government—causing a loss of jobs in the private sector, forcing more businesses to move out of State.
If it fails, government will have to cut ten billion per year, or go into debt and deficit by that amount. This will cause the cutting of thousands of government jobs and programs (which might save the State).
At the same time, if it passes, the Munger $10 billion per year going to “education” will transfer that money from families and businesses to union run government schools—with no reforms of the failed government school system. Because of the massive collapse of the pension system, already insolvent, most of the new tax money will go to bail out CalSTRS, not into the classroom or quality education.
So far Munger has given $8 million to tax you $120 billion over twelve years. She has pledged to spend whatever it takes—and she is a billionaire.
Also, for January 1, 2013 if it passes, is a new one billion tax on business by “closing” loopholes (really tax credits to create jobs). That is one billion less for businesses to expand or create jobs. The billionaire behind this measure promised to spend $20 million of his own money to pay this job killer.
Businesses see all these financial disasters and are looking at moving to another State (many have gone to business friendly Texas), stop expanding or closing down. Even if all these measures fail, and I expect they will, business understands they are the target of an out of control Democrat/union run State.
Add to this disaster the fact that we owe the Feds $10 billion for bailing out our unemployment system—and need to borrow more, since it is again about to be insolvent. In September we will have to pay the Feds $492 million, just for the interest on the loan—and that comes from our General Fund.
Both CalPRS and CalSTRS are insolvent, with hundreds of billions of unfunded liabilities Worse, they are claiming a 7.5% return on equity. They know that is a lie. CalPRS last year had a 2.3% return. CalSTRS for the last six months of 2011 had a “return” of a negative 3.4%.
The difference between the predicted return and the actual is the amount of ADDED unfunded liabilities of the systems. If they were private companies the Federal government would take them over.
California has an admitted unemployment rate of over 11%, while the real rate (including the discouraged, those who have lost benefits, those who are underemployed) is really over 20%. Thanks to the increased pension demands (CalPRS is demanding an extra $213 million from local government) local government is cutting back on services and personnel)
Did I mention that California, when ALL is counted, is headed toward another real deficit, year to year, of $40 billion? The seven years of Arnold gave us a total of $200 billion in deficits.
January 1, 2013 is the tipping point for the financial collapse of the “Late, Great, State of California.”
Local government is nickel and diming families and businesses at the same time. Los Angeles has decided to add $40,000 to the cost of opening a new grocery store by mandating a “cart” retrieval system. Get a parking meter ticket in LA? The cost is $73—or more.
San Diego, a bankrupt city, is debating adding hundreds of thousands to the “arts” community. Currently the city cutting cops and parks is paying more than $7.7 million for the arts.
Yet, with this fiscal collapse, Gov. Brown is still demanding we spend $200 billion on a choo choo train—yet refuses to tell us where the money will come from. He wants us to start building it with the financing in place. So far, only government has financed this loser.
Defeating the tax increases on the November ballot is mandatory. But, that will not end the problem. Until Sacramento gets serious and ends its relationship with special interests like unions, agrees to drill for oil to gain revenues and jobs, expect the complete fiscal collapse of California the first quarter of 2013. It will start on New Years Day—and that will give you a hangover.
Please mark January 1, 2013 on your calendar. That will be an historic day for the State of California.
Unless things change, President Obama will give us a $494 billion tax increase, nationwide. That day ends the Bush tax cuts, the AMT patch and starts the massive, first stage, of Obamacare tax increases.
In California, that will be the first day of the ten billion dollar per year transfer of funds from one business to another, with billions also going to government, for the scam of the century, “Cap and Trade”. This does not clean one little bit of our air, just moves the dirty air around. That is ten billion.
Then, if passed, that will be the first day of the Brown/union $10 billion per year tax increase. If it passes, families and businesses in California will transfer $10 billion a year to government—causing a loss of jobs in the private sector, forcing more businesses to move out of State.
If it fails, government will have to cut ten billion per year, or go into debt and deficit by that amount. This will cause the cutting of thousands of government jobs and programs (which might save the State).
At the same time, if it passes, the Munger $10 billion per year going to “education” will transfer that money from families and businesses to union run government schools—with no reforms of the failed government school system. Because of the massive collapse of the pension system, already insolvent, most of the new tax money will go to bail out CalSTRS, not into the classroom or quality education.
So far Munger has given $8 million to tax you $120 billion over twelve years. She has pledged to spend whatever it takes—and she is a billionaire.
Also, for January 1, 2013 if it passes, is a new one billion tax on business by “closing” loopholes (really tax credits to create jobs). That is one billion less for businesses to expand or create jobs. The billionaire behind this measure promised to spend $20 million of his own money to pay this job killer.
Businesses see all these financial disasters and are looking at moving to another State (many have gone to business friendly Texas), stop expanding or closing down. Even if all these measures fail, and I expect they will, business understands they are the target of an out of control Democrat/union run State.
Add to this disaster the fact that we owe the Feds $10 billion for bailing out our unemployment system—and need to borrow more, since it is again about to be insolvent. In September we will have to pay the Feds $492 million, just for the interest on the loan—and that comes from our General Fund.
Both CalPRS and CalSTRS are insolvent, with hundreds of billions of unfunded liabilities Worse, they are claiming a 7.5% return on equity. They know that is a lie. CalPRS last year had a 2.3% return. CalSTRS for the last six months of 2011 had a “return” of a negative 3.4%.
The difference between the predicted return and the actual is the amount of ADDED unfunded liabilities of the systems. If they were private companies the Federal government would take them over.
California has an admitted unemployment rate of over 11%, while the real rate (including the discouraged, those who have lost benefits, those who are underemployed) is really over 20%. Thanks to the increased pension demands (CalPRS is demanding an extra $213 million from local government) local government is cutting back on services and personnel)
Did I mention that California, when ALL is counted, is headed toward another real deficit, year to year, of $40 billion? The seven years of Arnold gave us a total of $200 billion in deficits.
January 1, 2013 is the tipping point for the financial collapse of the “Late, Great, State of California.”
Local government is nickel and diming families and businesses at the same time. Los Angeles has decided to add $40,000 to the cost of opening a new grocery store by mandating a “cart” retrieval system. Get a parking meter ticket in LA? The cost is $73—or more.
San Diego, a bankrupt city, is debating adding hundreds of thousands to the “arts” community. Currently the city cutting cops and parks is paying more than $7.7 million for the arts.
Yet, with this fiscal collapse, Gov. Brown is still demanding we spend $200 billion on a choo choo train—yet refuses to tell us where the money will come from. He wants us to start building it with the financing in place. So far, only government has financed this loser.
Defeating the tax increases on the November ballot is mandatory. But, that will not end the problem. Until Sacramento gets serious and ends its relationship with special interests like unions, agrees to drill for oil to gain revenues and jobs, expect the complete fiscal collapse of California the first quarter of 2013. It will start on New Years Day—and that will give you a hangover.
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