Cancel the kitchen scraps for Republicans

Cancel the kitchen scraps for Republicans

Nov. 14, 2012

By Katy Grimes

It appears that the majority of California voters are getting even. But this begs the question: With whom?

The 2012 election was disastrous for Californians who support a free market, private-property rights, limited government and individual liberties. Labor unions won nearly everything they wanted. Now it appears that the “fix” is in on California, and the thugs and zombies are in charge.

“How many tax increases will ‘fix’ California?”, I asked in my column last week, just in time for the general election. Californians were faced with 240 state and local ballot measures to increase taxes, “fees” and school bond measures. Most of them passed, including Gov. Jerry Brown’s Proposition 30, which included a hefty sales tax increase on everyone in the state, and a retroactive income tax increase on those earning more than $250,000 annually. Proposition 39 also passed. It’s a $1 billion tax increase on out-of-state businesses.

As Robin Hood’s Sheriff of Nottingham said, “That’s it then. Cancel the kitchen scraps for lepers and orphans, no more merciful beheadings, and call off Christmas.”

Taxes, fees, taxes and more taxes

Californians, gird your loins in anticipation of the tax onslaught.

Because most California politicians are in denial about the upcoming inevitable insolvency of the state, they continue to put forth policies as though it’s the 1980s all over again, when growth seemed infinite.

Passage of the tax increases in Props. 30 and 39 will only expedite the state’s chronic budget deficits and inevitable ruin. Small and large businesses will flee the state, shrink or close. Food production and manufacturing, already shrinking, will fight to survive. The wealthy can live anywhere, and more will choose to establish residency in lower tax states.

California’s real deficit

California’s sham “balanced” 2012-13 budget already was upside-down within weeks of passage. The state had to borrow billions of dollars almost immediately, adding to the skyrocketing debt — a debt that is always understated.

Last May, I wrote about the state’s real budget deficit totals, noting how state Controller John Chiang parsed words by only detailing the status of the general fund.

“The state ended last fiscal year with a cash deficit of $8.2 billion,” the controller reported. “The combined current-year cash deficit stands at $21.5 billion.  Those deficits are being covered with $15.1 billion of internal borrowing (temporary loans from special funds) and $6.4 billion of external borrowing.”

But the controller neglected to say that California owes the federal government nearly $10 billion, money that was borrowed to keep joblessness benefits coming to the state’s legions of unemployed; and that it owes $313 million to the state disability insurance trust fund after taking the money to pay for the debt service on the federal loans.  Chiang also neglected to include the billions in health care obligations, or the public pension obligations of CalSTRS and CalPERS, the state’s teacher pension and state worker employee pension systems. The pension funds are covered by internal borrowing from special state funds, and more than $6 billion in “external borrowing,” money the state has to pay hefty interest on.

Bottom line: California’s deficit is really more than $35 billion, and that number does not include the more than $500 billion in unfunded pension liabilities.

So Brown’s Prop. 30 tax increase, which is estimated to only raise $6 billion, will not go to schools as advertised, but will instead be fed right into the current deficit trough.

What’s ahead?

A series of federal tax breaks are about to expire at the end of December.

The Bush tax cuts, payroll tax cuts and child tax breaks will end. Unless the tax cuts are extended by Congress, 2013 will usher in higher estate taxes, income taxes and capital gains taxes. And the alternative minimum tax which will slam 26 million households with an average tax increase of $3,700, according to the Chicago Sun-Times.

The Bush tax cuts slashed the top income tax rate of 39.6 to 35 percent, and the bottom rate of 15 percent to 10 percent. Estate taxes currently allow a couple to give a gift or leave an estate worth up $10 million tax free. That $10 million limit will drop to $2 million. It is estimated that nearly 10 times more estates will be hurt by this insidious tax.

The other insidious tax is the payroll tax; 120 million households are estimated to be facing a 2 percentage point increase in the payroll tax, according to the Congressional Joint Committee on Taxation.

The “fix” is in

Californians are not only facing a Democratic supermajority in the Legislature, we are staring down the barrel of new state and local taxes, expiring federal tax cuts, upcoming cap and trade taxes on carbon emissions, higher fuel costs, energy rate increases, higher university tuition costs, the worst Standard & Poors credit rating of any state in the nation, an oil-severance tax, continuing double-digit unemployment, adding a sales tax to services, more state and federal regulations, attempts to weaken the state’s ballot initiative process and changes to the state Constitution.

Democrats even plan to make it easier for cities to increase taxes.

As I write, I am in Florida, a state with zero state income tax and more realistic property taxes. Florida is filled with former Californians who fled the high-tax state for sunshine and reality. I am not advocating a repeal of Proposition 13, California’s 1978 initiative limiting property taxes, because it is the only tax relief that some California residents get.

With all of this bad news, there is good news for some: Union members will enjoy pay and pension boosts paid for by the rest of us.

Cancel the kitchen scraps for everyone else.

34 comments

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  1. Bob
    Bob 14 November, 2012, 06:33

    When does the Sacramento sales tax increase kick in?

    Reply this comment
  2. Ted Steele, The Decider
    Ted Steele, The Decider 14 November, 2012, 06:52

    Until the repubs jettison the hate/race filled teabaggers they are doomed to lose. Happily our nation is reaching a diversity tipping point of sorts. A losing repub party hurts America. They have lost their center. I find it sad to continually read the far right repub take on the election vis–“we didn’t get conservative enough” etc. That kind of cluelessness and failure to be a “learning organization” (apologies to Peter Senge) will insure their being out of power for another decade.

    Discuss-

    Reply this comment
  3. Bill
    Bill 14 November, 2012, 07:20

    Hey Teddy, hablo espanol?

    Reply this comment
  4. Kurt
    Kurt 14 November, 2012, 08:12

    “With all of this bad news, there is good news for some; there will be union raises and pension benefit increases.”

    and we have how many BILLIONS in unfunded liabilities already ?

    great – and we know the dem’s mantra – tax,tax,tax,
    let’s see how many more tax prop’s are on the April ballot – 2,4,8?
    anybody care to guess ?

    Reply this comment
  5. Dyspeptic
    Dyspeptic 14 November, 2012, 08:28

    Ted, just when I start to think you have a brain you write something stupid & hypocritical again. Referring to the Tea Party as “hate/race filled teabaggers” is itself hateful and vindictive. You are the very thing you denounce. Why can’t you statist zombies learn how to be gracious in victory?

    Try to lighten up your blackened soul by being magnanimous for once. If you’re spoiling for a fight, look in the mirror and behold the real enemy. Besides, the Tea Party is politically impotent and irrelevant so why the vicious hatred for the vanquished? You and your ilk are the destroyer of Republics, the enemies of tolerance, enlightenment, prosperity and liberty.

    Reply this comment
  6. Dyspeptic
    Dyspeptic 14 November, 2012, 08:44

    As goes California so goes the Nation.

    Within a decade or two the rest of this sorry ass Republic of Idiots will follow suit. We will have open borders, government monopoly healthcare, draconian gun laws, European style tax rates, permanently high unemployment, socialist labor cartel bosses run amok, untold trillions wasted on apocalyptic environmental scams, a federally run educational wasteland and crony capitalism for labor cartels and billionaire money grubbers.

    Weep for your country people, you have pissed your birthright of liberty and limited government down the rat hole of history.

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 14 November, 2012, 09:29

    Why worry so much….your a pimple in the process….Jhonny and Buzz rule you now and go with the flow…
    You can always PACK AND SHIP…if your competent, you can cut it running a gourmet obesity truck in Texas or some other carpetbagger job.

    Reply this comment
  8. Rex the Wonder Dog!
    Rex the Wonder Dog! 14 November, 2012, 09:36

    Ted, just when I start to think you have a brain you write something stupid & hypocritical again.

    Come on, Teddy rides the short bus, but he is fun to have here…..although he did get our good buddy Beelz booted for race baiting him 🙁

    Reply this comment
  9. Dyspeptic
    Dyspeptic 14 November, 2012, 10:10

    “Come on, Teddy rides the short bus”

    That’s funny Rex.

    Reply this comment
  10. Dyspeptic
    Dyspeptic 14 November, 2012, 10:25

    “Why worry so much”

    Because I don’t like the taste of Kool-Aid and the shackles of enslavement rub my wrists and ankles raw.

    Reply this comment
  11. ted
    ted 14 November, 2012, 10:39

    Dysphoric–Seems like I hit a nerve! “the short bus” ??? I am not shocked that you find a joke about disabled funny, not shocked at all. Your ilk can be spotted a mile away. The fact that you can’t see what half the nation sees about the tea party and the vibe they transmit explains why guys like you and Carl Rove operate in the foggy netherworld of losing politics right now. When and if you wake up will predict your chances of good fortune in national and state politics, until then, enjoy your career of blog posting….zzzzzz……

    Reply this comment
  12. Ulysses Uhaul
    Ulysses Uhaul 14 November, 2012, 10:51

    Tea Party was a factor running Deliverance Boys for the Senate……only bunker tremor worms voted for them!

    Reply this comment
  13. Barb
    Barb 14 November, 2012, 13:37

    Good read Ms.Grimes! I mean its not good how we now are about to go “Foward” towards the proverbial fiscal cliff. No good at all! But hey, the democrats now own it. And as many have mentioned, this is like watching, slowly, the titanic hitting the iceberg. All this gobbledeegook about fairness is about to sink!

    Florida is a great alternative as are many other states!

    Reply this comment
  14. Barb
    Barb 14 November, 2012, 13:53

    On a side note: It will interesting to see if there will be an out-migration of latinos back to Mexico. I’ve heard talk about this! Over and out!

    Reply this comment
  15. ted
    ted 14 November, 2012, 14:02

    Yes Barb– It’s true– the Mexicans are leving in droves! Just like that movie about a day without Mexicans. Crops will rot in the fields, jobs everywhere un done, mass panic, and no professional baseball! Get out while you can! Tampa beckons!

    Reply this comment
  16. Barb
    Barb 14 November, 2012, 15:36

    Here you go Teddy-boy!

    http://www.newsy.com/videos/study-more-mexicans-leaving-us-than-entering/

    No mas trobajo!

    Reply this comment
  17. ted
    ted 14 November, 2012, 15:58

    Barb– I never look at links– can’t tell where you’ve been! Ouuuuuuuuuuuuuuuuuuuuuuch!

    Hey— I KNOW the Mexicans are leaving– That’s what I was telling YOU !! As I said they are leaving in droves! Boxcars! Bushels! It’s crazy! There are Mexicans running by me right now screaming for the border!

    WE ARE DOOOMED I tell ya!@!@!@!!!!!!!!!!

    Reply this comment
  18. DavidfromLosGatos
    DavidfromLosGatos 14 November, 2012, 16:02

    I concede defeat. The people have spoken. They want income taxes raised on the successful (Prop 30), but not on themselves (Prop 38). I suspect many who voted yes on 30 realize this will do little for schools or the state budget in the big picture. Every election for last 30 years has been filed with pleas to save the schools, etc. (I remember how the lottery was going to save schools!)

    IMO, this is more about the politics of envy and resentment. Someone has something that you don’t have, so it should be taken from them. You realize it won’t be given to you, but just seeing it taken from them makes you feel better. That sort of thing. California leading the nation, providing a nice sounding board for the POTUS.

    I doubt there will be any mass migration of the successful out of California. Some will leave over this, others won’t or can’t. Some that would have moved here will not, but others will still show up, despite the high tax rate. It will take several years to really shake out.

    But, for me this was the proverbial straw. It will take us 12-18 months to complete the move (WA, CO, and TX are on the short list). Sad, because we like living here. Great weather, tons to do outside (we do lots of hiking in the local open space areas and state parks). Weather cannot be beat. Lots of diversity, restaurants, etc. But staying in CA would demonstrate a complete lack of self-respect.

    Moving the business will be hard, and a few good people may lose jobs. But, each job lost in CA will be an opportunity gained for somebody else in another state (in our case) or country (for some others). Life goes on.

    Reply this comment
  19. NTHEOC
    NTHEOC 14 November, 2012, 17:18

    Katy grimes says,
    Florida is filled with former Californians who fled the high-tax state for sunshine and reality
    =================
    LOL,hahah , Have fun in florida!!The state is not like the “boot heel” off the US. It is more like a turd dangling off the rear end of the country desperately trying to shake it off into the ocean. What about Florida’s beautiful weather? Who you trying to kid Katy? You mean stale, Muggy weather! California can have desert heat and other places get hot as well, but Florida gets so humid the windows are covered in the moisture and you cannot see out. This makes the place a breeding ground for mosquitoes bigger than you! Florida was built on swamp land by drugs!!! And watch for them gators Katy!!!! UHGGGGG FLORIDA!!

    Reply this comment
  20. CalWatchdog
    CalWatchdog 14 November, 2012, 17:55

    You may not like Florida NTHEOC, but that does not explain why so many Californians, and so many professional athletes, rock stars, TV and movie stars and sucessful business people have reestablished residency in the state. For a huge savings, people can afford more air conditioning, screened-in patios and bug spray.

    Katy

    Reply this comment
  21. CalWatchdog
    CalWatchdog 14 November, 2012, 17:56

    Spot on comment David. Sad, but true for many of us – Katy

    Reply this comment
  22. Nathaniel M
    Nathaniel M 14 November, 2012, 18:41

    Hey but we have “Peace in our time” Katy. The Chronicle has stated that our deficit has nearly vanished!!

    http://www.sfgate.com/bayarea/article/California-s-deficit-shrinks-to-1-9-billion-4037701.php

    The annual fiscal outlook released by the analyst Wednesday showed a “dramatically smaller budget problem” than the state has faced in recent years, according to the report. One year ago, the analyst pegged the problem at $13 billion, and it was $25.4 billion the year before that.

    If you believe that….

    Anybody wanna buy the newest Bridge in San Francisco? I own clear title donchyaknow. 🙂

    Reply this comment
  23. Hondo
    Hondo 14 November, 2012, 19:17

    When Katy talks about the money ‘leaving’ the state she didn’t mention the investment money NOT COMING TO THE STATE. Le Bron James, the best and most popular player in the NBA choose not to come here. But if he did, he would have created a huge economy all around himself, far more than the other new players who have yet to break a sweat yet for the Lakers ( are they still 2 and 4?).
    And why would a hi tech company want to come here. We have the highest paid teachers but have the most illiterate population out side of Mississippi. If they brought their own employees they would be facing outrageous taxes, a falling down infrastructure, and some of the worst public schools in the country.
    Don’t hold your breathe for a gift from Obama. Sandy and the fiscal cliff will take precedent. And the Republicans in congress have no more skin to loose in California. Ryan’s budget won’t have a thing for Kali or Illinois.
    Speaking of those ‘racist Tea Baggers’. Lets not forget Occupy’s rape after rape after rape after rape after rape after riot after murder after rape….And one of them shot up the white house. How many arrested for terrorism? Arson in Colorado. Then there were more rapes, and more rapes and more rapes and more rapes……
    Hondo…..

    Reply this comment
  24. Queeg
    Queeg 14 November, 2012, 19:17

    With fed top rate taxes set to rise….a successful Kali will face about 52 % in income taxes….if medicare taxes go unlimited, tack on another couple percent and then Obamacare capital gains treated as ordinary income….total tab is gruesome.

    Trickle down and Laughing Curve……where are thou?

    Reply this comment
  25. NTHEOC
    NTHEOC 14 November, 2012, 19:44

    Hondo says:
    Le Bron James, the best and most popular player in the NBA choose not to come here.
    =======================
    Hhahahahahahahaahaha!!!!! Le brick james did not choose not to come here hondo! We wouldn’t want that loser anyway,,,Oh but he does have ONE nba championship in 10 years of play. And our very own KOBE BRYANT FROM OC CALIORNIA has fricken 5 buddy!!!!! Hey hondo, try getting a ticket to our beloved LA lakers for less than a hundred bucks. And we are sold out the whole season!!!Ohhhhhh but the sky is falling huh hondo…lol

    Reply this comment
  26. Rex the Wonder Dog!
    Rex the Wonder Dog! 14 November, 2012, 19:52

    LOL,hahah , Have fun in florida!!The state is not like the “boot heel” off the US. It is more like a turd dangling off the rear end of the country desperately trying to shake it off into the ocean. What about Florida’s beautiful weather? Who you trying to kid Katy? You mean stale, Muggy weather! California can have desert heat and other places get hot as well, but Florida gets so humid the windows are covered in the moisture and you cannot see out. This makes the place a breeding ground for mosquitoes bigger than you! Florida was built on swamp land by drugs!!! And watch for them gators Katy!!!! UHGGGGG FLORIDA!!

    NTHEOC, YOU STOP pikcing on our Katy!!!!!

    You’re always bagging on her…..ease up or you will be put in a time out 🙂

    Reply this comment
  27. NTHEOC
    NTHEOC 14 November, 2012, 20:43

    rex the wonder dog says,
    NTHEOC, YOU STOP pikcing on our Katy!!!!!
    You’re always bagging on her…..ease up or you will be put in a time out
    ===========================
    You should be happy rex, it keeps the heat off you!!!!LOL. I’m sure Katy can hold her own.I try to engage her and keep her in check….

    Reply this comment
  28. Queeg
    Queeg 14 November, 2012, 23:09

    You two are dangerous righty loons….dangerous thoughts…….

    Reply this comment
  29. SeeSaw
    SeeSaw 15 November, 2012, 13:31

    We will keep marching–that’s what we will do.

    I have family living in one of Florida’s most beautiful places–Venice. Its a lovely place to visit, but not to live. Best month to visit is May. It is overrun with snowbirds from November to April, and hurricane season with smothering heat and humidity is from June to November.

    Bob, I think the increased sales tax goes into
    affect on Jan. 1, 2013. Its going to be really hard to pay an extra quarter on that $100 pair of shoes–oh my. I wish I were in the over $250k group, so I could feel like I will be helping more.

    Kurt, there will be no more Propositions on the State ballot until November, 2014. Thank god for little favors.

    Reply this comment
  30. Queeg
    Queeg 15 November, 2012, 15:02

    I heard they are going to pass a law for monthly Propositions only for voters on the COAST. Inland bunker boys get their Propositions in 2014….they will fail as usual for being far far far to radical…sigh!

    Reply this comment
  31. Dave Francis
    Dave Francis 15 November, 2012, 18:37

    IS CALIFORNIA TAXPAYERS COMMITTED TO SUBSIDIZE ILLEGAL IMMIGRANTS FOREVER?

    BEFORE ANY PASSAGE OF IMMIGRATION REFORM FINDS ITS WAY THROUGH THE CONGRESS, TWO BILLS ARE A NECESSITY TO EVENTUALLY STOP THE INGRESS OF ANY MORE FLOWS OF ILLEGAL IMMIGRANTS. 1. THE LEGAL WORKFORCE ACT CONTAINING MANDATORY E-VERIFY AND HALT ILLEGAL ALIENS TAKING JOBS AND HOLDING EMPLOYERS ACCOUNTABLE. 2. A SIMPLE AMENDMENT TO END THE BIRTHRIGHT CITIZENSHIP BILL TO STEM THE INFLOW OF SMUGGLED BABIES EITHER UNBORN OR AS AN INFANT, INTO THE UNITED STATES TO GAIN INTENTIONAL RIGHTS TO BE A CITIZEN AND A MASSIVE FINANCIAL BURDENING THE U.S. TAXPAYER. 3. THE REINTRODUCTION OF FORMER PRESIDENT BUSH 2006 SECURE FENCE ACT IN ITS ENTIRETY. THIS IS A DOUBLE PARALLEL FENCE STRETCHING ALONG THE BORDER OF THE U.S STATES AND ITS SOUTHERN NEIGHBOR. AMERICA MUST REDUCE SANCTUARY CITIES, CHAIN MIGRATION AND THE ILLEGAL ALIEN INVASION. 4. A GOVERNMENT ISSUED PICTURE ID CARD, WHICH CONTAINS INFORMATION TO USE IN PROVING WHO YOU ARE?

    MULTIBLE LIES COMING FROM THE DEMOCRATIC MAJORITY ASSEMBLY

    Stephen Frank Stated on 11/14/2012 on California deficits as follows at http://capoliticalnews.com/

    In the past two months, the cash deficit of the State has gone from $22.3 billion to $24.7 billion—just for the first four months of the year.
    Plus the State OWES $12.5 billion to K-12 education It owes $15 billion stolen from Trust Funds to cover cash deficit
    It owes $10 billion BORROWED to cover the rest of the cash deficit.
    The State owes the Feds $10 billion for the loan to the unemployment insurance fund—so California can continue to send out unemployment checks.
    That is a total of $71.5 billion—and there is more. Yet, the State claims “California faces a $1.9 billion deficit through June 2014, significantly smaller than in recent years after voters passed two tax initiatives last week, the nonpartisan Legislative Analyst’s Office said last Wednesday”
    They claim we will have this small deficit, instead of $71 billion because of the $9 billion Prop. 30 is going to bring in, in new revenues! Any wonder our kids are illiterate—this is the math taught in our schools. Government lies—and tries to make you feel good about being insolvent.
    Seems like marijuana must be legal in government offices, he has studied.

    California has the highest population of illegal aliens who have settled there. Thousands of children of illegal alien parents gaining automatic citizenship and the cost is thrown at the taxpayers. Health care and other free handouts that are the right of citizens is being disbursed to anybody who sneaks across the border or steps off a plane. None of the 50 states is exempt from this silent attack on our country or the pilfering of their general treasuries.

    Reply this comment
  32. NTHEOC
    NTHEOC 15 November, 2012, 20:12

    Dave Francis says
    California has the highest population of illegal aliens who have settled there. Thousands of children of illegal alien parents gaining automatic citizenship and the cost is thrown at the taxpayers.
    ==============================
    A good question is why aren’t those here at the “CAL WATCHDOG” going after this problem? Why do we not see a daily report or other articles on this matter? Instead they focus all their energy on attacking public employee’s such as teachers,nurses,police officers,and firefighters!!!

    Reply this comment
  33. Queeg
    Queeg 15 November, 2012, 22:24

    Ask Donkey the top CWD basher…..constipation?

    Reply this comment

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