Liberty vs. State of California

The State of California has soundly defeated Liberty, it happened on a slow ride in a one-party state.  We have Jerry Brown and the state legislature, both the senate and the assembly, to thank for this resounding victory.  Here are some numbers (I am a numbers guy) that I compiled from the legislative record available on the state website.  I in no way vouch for the complete accuracy of these numbers.  This is a listing by assembly year, number of days’ assembly in session, numbers of laws introduced and number of laws passed:

 Year    DaysIntroducedPassed
2009   125               1,590      904
2010    119                1,209      759
2011     126               1,433       767
2012     121               1,267       743
2013     127              1,430       768
2014     118               1,336       852
2015     126              1,549       906
2016     119               1,366       846
Total   981               11,180    6,545 

That is about 11 new laws introduced for each day the assembly was in session and almost 7 new laws passed for each day the assembly was in session.  The average is 818 new laws per year for the last eight years.  I am sure that this has been going on longer than eight years.  The numbers are astounding yet they do not lie.

Liberty has been successfully tied down with hundreds and hundreds and hundreds of little ropes by little people. 

Ever the "Rational Optimist" (a Matt Ridley book, required reading) I am sure that the weight of all these laws, the inability to enforce all these laws, the number of people ignorant of the laws and the number of people who choose to ignore some of the new laws will in the end bring sanity back to Sacramento. 

Well, Crap, I am not that optimistic at this moment, sanity in sacramento, we do have the "Bullet Train" to nowhere!

California tax tricks

Taxation without Representation

 

Here is the deal:  California borrows money from the Federal government (FUTA Loan), California does not pay the loan back and, therefore, for each employee a California employer pays an additional tax $126 to Federal government in January.  The result is a staggering $9 billion tax on employers who have employees in California through 2017.

California borrowed money from the federal government to cover unemployment benefits paid during the financial downturn in 2008-2010.  The state has not repaid this loan and as of January 11, 2017, the balance is still $4,038,682,273 per the Department of Labor.  Every other state in the United States that used this same type of federal loan has thought it best to pay back the Federal government.  The state of California thought it best to not repay the loan and leave employers with a hidden, nonvoter approved tax based on the number of employees.   The cost to employers was $4,844,446,000 through 2015 and it is estimated that this loan will cost employers $2,084,296,000 for 2016 and $2,464,550,000 for 2017.  This puts the additional tax that employers in California will have paid from 2011 through 2017 at a staggering $9,393,292,000.     That is NINE BILLION dollars.

The best thing that the State of California could do right now is payoff the $4 billion in loans.  This would put $2.4 billion back into the economy as employers would not have to pay the loan tax in 2017.  Don’t count on that happening, as Jerry Brown would rather spend $64 billion on his “field of dreams, if you build it they will come” bullet train to nowhere.