Lies and illusions are presented with emotional appeals for the purpose of stimulating voters to doing the (right thing?). This fabrication does not hide the underlying deception. California voters have wised up to these commonly used deceptive tactics presented in every election cycle.
You will always hear emotional appeals (otherwise known as touchy-feely) such as “It’s for the kids,” “It’s for the schools,” “It’s for the firefighters,” “It’s for clean water,” “it’s for better streets and roads,” “It’s for a cleaner environment,” and on and on. Sorry police person(s), you have been vilified in this election cycle and appear to be in the hot-seat. The mainstream media and municipalities are trying to take the handcuffs of the criminals and put them on your wrists. Some deserved and some not? Maybe next year?
The truth is that almost all bills that are passed increase taxes that go to fund the shortfall pension obligations of the California Public Employees’ Pension System and the administrative fees to run the various programs. Also, the state government will always find a new need to grow a brand new and additional intrusive bureaucracy with more labor union employees, and future pension obligations that must be paid for by the taxpayers.
The administrative state in California, meaning the sum of all the government employee bureaucrats and corresponding labor union members, have a habit of always growing in numbers and creating more regulations and intrusions into people’s personal lives. There are 560 different government regulatory agencies and the search to expand is constant. The only problem is that their salaries require payments from tax dollars, which come from the productive class. California’s pension obligations are upside down by 1 Trillion dollars (spelled with a capital T). They continue borrowing to bridge the shortage while kicking the financial obligations can down-the-road. This will only mean deferring to a point of no return and obvious crash. Their preferred alternative is to vote in additional taxation and increase institutional power.
Cities are so cash strapped by their massive unfunded pension liabilities that they have now entered the “crazy zone,” of the unthinkable. Now cities such as West Covina, CA (unfunded $205 million) and Torrance, CA (unfunded $350 million) have decided to borrow money from Wall Street by issuing what they refer to as “lease revenue bonds.” These bonds provide for borrowing cash from Wall Street Securities firms and using city streets as collateral. Yes, as farfetched as this proposition seems, cities are now hypothecating their city streets to raise money to pay for their irresponsible budgeting and use of fraudulent pension actuarial formulas. This new wave con-job consists of leasing city streets by conveying title through a security agreement to a Special Financing Authority, which will pay the city up-front money (bail out money), and “rent the streets back” to the city for the 25-year term of the agreement. Can you imagine that sometime in the future if your city defaults on the “rent payment obligations” and the lender (bond holder) forecloses on your city streets? You as an obedient local tax paying resident may not have access for entering /exiting into your own private home and property.
10 years ago, California’s annual state budget was $90 billion. In only 10 years it has grown to $222.2 billion, with an expected shortfall of $54 billion. This projected tax receipts shortfall was before the COVID shutdown. The aftermath may double the estimated shortfall to $100 billion. This $100 billion is an estimate that takes into consideration all the sustained business economic losses included in this prolonged economic downturn.
Review my article “Lost in a Totalitarian Masquerade.”
Economic losses for California include $18 billion in the state college education system, losses from private capitalist businesses taxation (not including gross revenue of the businesses, paying overhead expenses, and a hopeful profit.) The new requirements of social distancing expanded physical facility and personnel costs, supplies/cost of goods sold, and the regulatory compliance are responsible for the closure of more than 50% of the businesses.
10 years ago, the state’s occupant population was 37,253,956. Today it has grown to 39,937,489. In the last 10 years, the population has increased by 2,683,533. An interesting observation is how many productive taxpayers have and are currently thinking about or are in the process of leaving the state. Productive folks are leaving at an accelerating pace. How many non-productive or moochers continue to arrive to scoop up all be of the most generous government handouts in the USA? Of course, government handouts are redistributions of tax dollars from the productive taxpayers or otherwise the producer class. Voting in additional taxation, expanding regulations, and increasing the size of government feeds or compounds the parasitic system.
California has 883,408 active full-time state, county, and local government employees. There are over 1,000,000 state, county, and local retired government employees. There are also 362,381 Federal employees who operate in California, including the Dept. of Defense and other annuitants. 64,000 Californians work for the post office, which is a quasi-federal public agency. The above numbers estimate and reflect at least 2,300,000 active full-time government state and federal workers, all of whom are getting paid a generous salary, benefit, and retirement compensation package.
The Hoover Institution’s California Policy Center recently examined the public-sector and found that full-time government workers earn 200% or twice what private sector similar jobs earn. For example, the study states that a typical fireman makes at least $200,000 per year with overtime included. The impact of unionization manifest itself in high pay, benefits, growth of institutionalized power and early retirement. The top public employee earner in California is $3,341,707 for the head coach for the University of California at Los Angeles. A few top university professors are paid more than $2,000,000 annually. No wonder so many university employees espouse socialism. Please let me join the club!
One may review all the multimillions of dollars salaries of public employees on www.publicpay.ca.gov. Bureaucratic government workers also receive 14 paid holidays, 12 personal days (personal means F-it, I do not want to go the work), 20 or more paid vacation days, and an early retirement pension plan where they can earn almost has much as their highest year of salary if they strategically plan. The impact and overreach of unionization manifest itself in high pay, benefits, and early retirement.
The unspoken reality is that the administrative state government is a monopoly that no one will openly object to because of the potential for reprisal attack consequences. Elected officials who are not labor union members or pro-labor unions having earned their temporary spot in government, may find themselves being attacked by enormously powerful career bureaucratic public employee labor unions or related political action committees (PACs). Unions will spend millions to destroy the reputation or recall elected individuals who are disobedient of their cause.
Even Franklin Delano Roosevelt, the 32nd President of the United States (1933-45), warned against allowing the public sector to gain collective bargaining rights. “All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service.” “It has its distinct and insurmountable limitations when applied to public personnel management.” “The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations.” “Government is the people.” “The employer is the whole people, who speak by means of laws enacted by their representatives in Congress. Accordingly, administrative officials and employees alike are governed and guided, and in many instances restricted, by laws which establish policies, procedures, or rules in personnel matters.” “The pay is fixed by Congress and the workmen are represented by the members of Congress in the fixing of Government pay.”
Why do voters allow themselves to be snookered by phony emotional appeals on every cycle of voting? Emotional appeals on ballots and deceptive language contained in many propositions are the norm, not the exception? Why do some voters keep voting for bigger government, larger budgets, more onerous regulations, and of course higher taxes, all under some preconceived illusion of fairness? The official narrative, subscribed by the ones who benefit the most, is that collectivism and government over-site are a good thing. The second big question is why voters do not seem to care whether productive taxpayer folks are leaving the state, and those who are arriving rely on government support (free benefits), including entitled classes, illegals, welfare recipients, and the homeless.
Companies in Silicon Valley, which include tech companies, billionaires and the “investor class,” pay over 40% of state taxes. These taxes include direct taxation on earned income, corporate taxes, and capital-gains taxes. The remaining taxes are paid by other productive individuals and companies around the state. Future costs to support the California population will require massive cuts in government services, raising taxes, and borrowing which will be dumped on individuals in our future generations. Government as an administrative class and holder of power will resist reducing its size and/or power. This has always been the case, regardless of the structural damage and losses of life savings and the dreams of families and businesses.
What will happen if the California legislature passes so much onerous legislation that will make it impossible to run a profitable business or own real estate because of the Draconian taxation, liability, and regulation(s)? Creating tens of thousands of additional bureaucratic government employees to implement and monitor the new Draconian rules will only exacerbate the problems, including limiting personal freedoms, extinguishing real property ownership rights, prohibiting and limiting operations of profitable businesses, and modifying and eliminating historical contract laws. Of course, there is a plan to add additional employees of the administrative state to monitor our actions, with severe penalties and negative consequences that will accelerate the drive for productive people to leave. This will stimulate operators of profit-motivated businesses to move to more business-friendly climate states. At the same time, the non-productive subsets of individuals will continue to arrive by the millions to get in on the free benefits.
One third of California’s population or approximately 11 million are foreign borne. About 23% of these are undocumented (illegal) immigrants of which 65% of the 23% figure are on public financial assistance. 34% of all California residents of all nationalities, or 13,600,000, including the undocumented of 1,020,000 are on welfare or public assistance.
California also currently has 8,000,000, or approximately 20% of its population who are unemployed and who expect unemployment benefits. Add 13,600,000 welfare recipients, plus 8,000,000 unemployed, plus 150,000 homeless equals a total of 21,750,000 who are not wage earners, not paying significant taxes, but expect financial, medical, and family support benefits. This is greater than 54% of the total state population. California has 12% of the US population but boasts 35% of all US welfare recipients.
California’s progressive government does not seem to care about issues of fairness but is hellbent on growing government services, dependency, and personal intrusions of all state occupants. Also, health, education, and legal costs associated with massive illegal immigration have squeezed the budget beyond repair. One third of the budget goes to the Medicare and Medi-Cal programs including births by undocumented immigrants. Zoning and building regulations discourage low-cost housing. But welfare benefits, non-enforcement of vagrancy and public health laws, and a fantastic climate will continue to draw the dependent or parasitic class.
For a summary relating to the propositions to vote for in California the 2020 please visit:
Let’s review a few of the propositions that will be voted on in November 2020. My suggestion is to vote strictly with what is most advantageous to your personal pocketbook, not all the false touchy-feely illusions presented.
- Prop 15: vote NO (This bill should be property named as the “public employees’ pension shortage bailout plan by destroying Prop 13 property tax limitations”
As always, you will see a deceptive title about the claim to “increases funding sources for public schools, local colleges and local government services.” What this bill really does is to create a massive increase in taxation of between $12-15 billion dollars. This measure guts Prop 13, which was the Howard Jarvis Initiative from 1978 that capped property taxes to 1.2% of purchase price and limited annual increases. Prop 13 is the primary salvation against California’s government and employees overreaching thrust for more money to feed itself.
This bill would allow for a massive increase in property taxes for commercial, retail, industrial and other properties. The state is quietly attempting to reclassify residential income property into commercial so that they can increase taxes on all residential income producing those as well. Property owners could see as much at a 500% increase in taxes if they have owned their property for a long time. As always, the increases would be passed along to the tenants, who would demand higher wages, who would in turn increase prices the public pays for goods and services to offset the increase. Prop 15 would dramatically increase the cost-of-living for working families that are already having a hard time. Additionally, this bill increases new taxes on home-based businesses. The primary beneficiary of this bill is U-Haul trailers and truck rental when residents choose to head out of the state.
- Prop 19: Vote NO (The firefighter protection fund and schools are window dressing for this bill to raise tax revenue by appealing to the voter’s emotions)
This bill is a tax increase but is falsely referred to as a tax relief measure. This bill revokes property tax protections for many homeowners. One small benefit is that it would allow homeowners who are over 55 to transfer a low property tax base to another property. Multiple criteria are required to take advantage of the tax base transfer.
- Prop 21: Vote NO (This bill should be referred to as “The less housing supply and economic destruction of real estate by creating regulatory barriers and providing disincentives to build, own, and invest”)
Approving this proposition will expand local governments rent control on properties over 15 years old. Their desire is to duplicate the San Francisco Rent Control Board’s punitive standards in every community in California. Rent control is a disastrous measure designed to choke off the supply of residential income property and creating disincentives to build, own, or invest.
- Prop 24: vote N0 (This bill should be called the “Unleash a whole new bureaucracy called the California Protection Agency on top of the others that exist to prosecute businesses who are ‘accused’ of running afoul with consumer private laws.”) Businessperson(s) will be deemed guilty until proven innocent because there are no protections in the administrative process available. Powerful unelected bureaucrats will have subjective powers to weaponise regulations. They will have delegated authority to adjudicate, prosecute and penalize. They are given the authority and the incentive to issue steep money fines that will help pay for and grow this devastating agency. This is a long step into the process of continuing to create a constitutionally unauthorized fourth branch of government.
The public observed the destruction of the State Board of Equalization that represented public businesses on tax appeals. Rather than being represented by a group of elected officials, the outcome was representation by administrative law judges who are labor union members, otherwise known as black robes with blue jeans underneath.
Always vote for your pocketbook. That is the only honest approach in the totally deceptive and illusionary process.
I agree that California needs a reset of more freedoms, less taxation, and less regulations, but not a groundswell of massive bureaucratic power grab with intensified weaponizing new powers. Who famously says repeatedly on the campaign trail “Come on, Man?”
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