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Super Majority in California
- Thread starter Flutterby
- Start date
UpperDecker
Member
- Joined
- Sep 19, 2005
- RO Number
- 19078
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- 443
And he'll build a high speed rail running right along with it, funded by multiple tax increases. In any normal state he would be recalled, but in this socialist dump he's our venerated leader. Maybe California really is the land of fruits and nuts.
Guest Commentary by Ron Mittelbrunn —Elections Have Consequences
Last week, Californians voted to raise the top tax rate to 13.3%, the highest in the nation. They also voted a legislative (Democratic) supermajority in both houses. The state constitution requires a two-thirds majority of both houses to raise taxes. Now, voter approval will no longer be required to arbitrarily raise any tax.
According to a recent article in the Wall Street Journal, California lawmakers have been borrowing and deferring debts for the past decade. They borrowed $10 billion from the feds to pay for jobless benefits. There is more than $200 billion in unfunded liabilities for retirement benefits.
Again, the Wall Street Journal states that the voter-authorized bonds that the state hasn’t sold yet because they can’t afford the debt payments amounts to $33 billion. This includes $9.5 billion for a bullet train, which will require another $50 to $90 billion to complete.
Now, where is all the money going to come from to pay these bills? We have just given the CA legislature the power to tax without voter approval. Watch out for an increase in sales tax, corporate income tax, and according to the WSJ, the specter of repealing Prop 13’s tax cap for commercial property. The Assembly already held hearings on the Prop 13 issue this past spring.
In the 2012 Business Tax Index, which rates all the states and District of Columbia tax systems for entrepreneurship and small business attractiveness, California ranked 45 out of 51 with 51 being the worst. When the latest tax increase hits next year, I’m sure CA will drop down to the bottom.
Having said all this, how successful do you think it would be to be able to attract business owners to relocate their business to California given the tax structure? Or, why would a company that already is located in California, but wants to relocate or expand, even think of doing it in CA?
The consequence…watch for an exodus of company’s out of California.
Ron Mittelbrunn
Short URL: http://www.ledger-dispatch.com/?p=43695
Last week, Californians voted to raise the top tax rate to 13.3%, the highest in the nation. They also voted a legislative (Democratic) supermajority in both houses. The state constitution requires a two-thirds majority of both houses to raise taxes. Now, voter approval will no longer be required to arbitrarily raise any tax.
According to a recent article in the Wall Street Journal, California lawmakers have been borrowing and deferring debts for the past decade. They borrowed $10 billion from the feds to pay for jobless benefits. There is more than $200 billion in unfunded liabilities for retirement benefits.
Again, the Wall Street Journal states that the voter-authorized bonds that the state hasn’t sold yet because they can’t afford the debt payments amounts to $33 billion. This includes $9.5 billion for a bullet train, which will require another $50 to $90 billion to complete.
Now, where is all the money going to come from to pay these bills? We have just given the CA legislature the power to tax without voter approval. Watch out for an increase in sales tax, corporate income tax, and according to the WSJ, the specter of repealing Prop 13’s tax cap for commercial property. The Assembly already held hearings on the Prop 13 issue this past spring.
In the 2012 Business Tax Index, which rates all the states and District of Columbia tax systems for entrepreneurship and small business attractiveness, California ranked 45 out of 51 with 51 being the worst. When the latest tax increase hits next year, I’m sure CA will drop down to the bottom.
Having said all this, how successful do you think it would be to be able to attract business owners to relocate their business to California given the tax structure? Or, why would a company that already is located in California, but wants to relocate or expand, even think of doing it in CA?
The consequence…watch for an exodus of company’s out of California.
Ron Mittelbrunn
Short URL: http://www.ledger-dispatch.com/?p=43695
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
quote:
Originally posted by KiDa
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
raised taxes and economy is in fact growing in a lot of places here. And, there has been some spending cuts
UpperDecker
Member
- Joined
- Sep 19, 2005
- RO Number
- 19078
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- 443
I'm a California business owner and have a home and boat on the Delta. As much as I love the place(The Delta. Screw the rest of California), it's just not feasible for me to live here any longer. Since much my business is out of state, it's a no brainer to move out. I'm already in the process of doing so.
quote:
Originally posted by getakey
quote:
Originally posted by KiDa
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
raised taxes and economy is in fact growing in a lot of places here. And, there has been some spending cuts
One question. Can they make payroll without borrowing money?
- Joined
- Jan 3, 2009
- RO Number
- 30972
- Messages
- 2,127
quote:
Originally posted by KiDa
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
Answer to question number one - same as the rest of the country.
Answer to question number 2 - same as question number one.
They are going to go from $300b in the red to a one billion dollar surplus in one year? 5b in five years? Rriigghhtt.
- Joined
- Jan 3, 2009
- RO Number
- 30972
- Messages
- 2,127
quote:
Originally posted by KiDa
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
Answer to question number one - same as the rest of the country.
Answer to question number 2 - same as question number one.
They are going to go from $300b in the red to a one billion dollar surplus in one year? 5b in five years? Rriigghhtt.
UpperDecker
Member
- Joined
- Sep 19, 2005
- RO Number
- 19078
- Messages
- 443
quote:
Originally posted by Flutterby
Upper, so where are you going to land?
Not sure yet. Most likely Georgia though.
UpperDecker
Member
- Joined
- Sep 19, 2005
- RO Number
- 19078
- Messages
- 443
quote:
Originally posted by getakey
$5B? I heard $9B by 2017
No way we will ever see that surplus put in the bank
Sure it will be put in the bank. In the bank for union pensions.
Yup, the Unions are the biggest winners with Obama and Brown running the shows. Those damn unions are going to kill capitalism and with it will go the [used to be] great nation! I hope I am not around to witness it......
quote:
Originally posted by KiDa
quote:
Originally posted by getakey
certainly looks like we are screwed
Heard on the radio that they are predicting a budget surplus in 2014. Its going to be spend, spend, spend
What voodoo economics are they using to come up with a surplus? Is the CA general populous that stupid?
YES!!!
G