Comments on: Feds to California — Drop Dead

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Thu, 18 Jun 2009 19:40:23 +0000

[…] Fed to California – drop dead Fundamastery […]

By: Don

Don — Thu, 18 Jun 2009 14:59:06 +0000

One of the real ironies here is that Democrats (especially California Democrats) have long held the position that corporate profits were obscene. In the eyes of many this extends to the limit that any profits whatsoever are obscene. So be it. But just like the contradiction of constantly escalating a tax on cigarettes to fund health care, California Democrats can now look out the window and see corporations and investors where they want them — without profits. Unfortunately, these same Democrats believed that there was no limit to the extent to which they could tax these profits — profits which no longer exist. It’s sort of like New York which relied so heavily on income taxes on the rich which they so richly despised. For many of us, justice prevailed and many of the rich are no more. Now the state is moving in the direction of egalitarian social justice and discovering that the obligation to pay for government has now presented itself at the doorstep of “regular people”.

It is not unreasonable to despise and tax corporations, investors and the idle rich. It is not unreasonable to wish them away. But those wishes will ultimately result in the egalitarian nightmare that everyone will have to share in funding things done in the “public” interest. And yes, that will include the magically “tax increase exempt” population of those earning less than $250,000 per year

By: Bruno Behrend

Bruno Behrend — Wed, 17 Jun 2009 13:03:39 +0000

This presents an incredible opportunity for the center and the right to focus on the real problem confronting CA and IL, the canaries in the American coal mine.

There will never be a better time (and CA and IL are the best candidates) to place the blame squarely on where it belongs - rapacious public employee unions and the administrative class.

These two culprits feed each other’s political clout, and they have bankrupted entire states while providing less than quality services (I’m much more familiar with Illinois).

Run against the Unions, run against un-necessary prevailing wage costs, and most of all, run against the pork, payroll padding, perks, and obscene pension expansion of the governmental class.

Make this the ultimate ‘peasants with pitchforks’ moment, and use the ensuing (but temporary) political power to limit Public Union power for generations. Sell hard and fast caps on any governmental unit’s growth and forbid the use of debt as a definition of “estimated revenues” (in regards to balanced budget clauses).

The moment is arising. Unions occupy the position of the Soviet Union circa 1983. They may look strong, but they have killed the goose that laid their eggs, and the next 18 months will be the perfect time to make the connection in the heads of the voters.

By: Christopher

Christopher — Tue, 16 Jun 2009 18:58:32 +0000

” ‘The administration is worried that California will enact massive cuts to close its deficit, estimated at $24 billion for the fiscal year that begins July 1, aggravating the state’s recession and further dragging down the national economy.’ ”

This highlights why we are in such trouble. Our current state and federal governments believe that only government spending is good growth. There’s no effort (or ability) to understand secondary effects from all of the capital seizure through taxation and investment suppression through borrowing.

Despite my desire to stay in California, I can’t help but continue to plan the move of my business out of the state. That relocation is the fastest way to increase my ‘income’ by 10% and give me the operating capital I need to keep growing the business.