An Open Letter to Gov. Jerry Brown (D-CA) January 13, 2011

I hope you all enjoy this.

Gov Brown.

First things first.
1. I did not vote for you

2. What you allowed the Nurses Union to do to Meg Whitman was the the iconic show of how low a politician will go to get a vote.

OK now on to the the budget.  Read this sentence over and over again.

Gov. Jerry Brown wants to spend millions of tax payer dollars on a special vote to ask taxpayers for millions of dollars.

Let me repeat that.

Gov. Jerry Brown wants to spend millions of tax payer dollars on a special vote to ask taxpayers for millions of dollars.

That my friend is absolutely the dumbest thing I ever heard of. Especially when the taxpayers already told Sacramento NO in 2009.
The Tax and Spend Liberal Marxist Socialists in power in Sacramento now have all but destroyed the business climate in California.

I’ll save you the millions of dollars on a special election for a tax extension.  THE ANSWER IS NO TO THE TAX EXTENSION.

OK then what should you do? A lot of people always complain about what the politicians are doing wrong but never offer a solution as to what they should be doing.
Eliminating Cell Phones and getting rid of unnecessary state vehicles…….Nice bandages. But the those motions are only short term and will be over and done by the next fiscal budget expiration date.
Here are my suggestions:

1. There are going to be thousands of California State Workers that are in line to get huge golden parachutes in the form of pension payments for the rest of their lives and free or heavily subsidized health care for the retirees and their families for the rest of their lives. These entitlement programs are unsustainable as by shear statics of there not being enough taxpayers in the future to fund this future financial train wreck.
What should be done in the future?  Simple. All new Employees of the state starting July 1 will not get a pension, instead they will get a matching fund 401K just like any other company.  When a state employee not longer works for the state either by early choice or retirement, they get their 401K at the end of employment and the state owes the ex employees no more money after termination date.
So now you are saying But what about all the pensions that are intact now.  This is easy, well sort of. The state Comptroller will have to figure out a formula for what each pension is worth today for every state employee.  That is the hard part…or maybe not.
Then by let’s say January 1 2013 all employees will have their pension rolled into a 401K. Again the long term fix is elimination the legacy costs for ex state employees or retirees. This is the long term fix. Not a bandaid like cell phones or state vehicles.

2. SEIU cannot hold a gun to the State Government for future entitlement programs. The same solution above applies to all State Union Workers.

The problem with Government entitlement programs is that it give a false sense of hope to the employees by eliminating the responsibility for the employee to be responsible and save for their own future retirement.
In addition to a Government matching 401K the government should also promote that the employees contribute to a personal IRA in addition to the 401K. No they cannot take the IRA contributions as a tax deduction as long as they are contributing to a 401K, But in the end they will have a comfortable savings so they they will not have to depend on tax payer dollars for the rest of their lives to live on.
The same condition with baby boomers will also apply to Social Security and Medicare. There simply will not be enough people to subsidize those entitlement programs in future years with payroll taxes.
Keep in mind when FDR came up with the entitlement program of Social Security People were only living to maybe 65 or 70. So FDR was betting that after a life time of contributions to Social Security an individual would not live long enough to drain the Social Security System. Social Security turned into a Huge Ponzi Scheme that now when people want to get paid for their investments there will not be the money there to pay back the people that are part of it when they live to 80 or 90 years old.

3. Illegal immigrants.  I know the unions and illegal immigrants voted you in.  What do you think that not one illegal immigrant voted for you?  LOL they either did with false documents or highly influence legal voters to vote for you. The State of California has to stop funding people that enter this country from all over the world illegally.
The state of California has to discourage more people from entering the US Illegally. The State of California can no longer be safe harbor for people that disregard the laws of the United States.  You really need to follow in the foot steps of AZ Gov. Jan Brewer.

4. Lower sales tax to 5% so people can start to spend money again on goods and service. More jobs will be created in the PRIVATE SECTOR.

5. Lower Corporate taxes by at least 20% to entice companies to expand or even start in California to create jobs.

6. Lower the maximum personal income tax bracket to 6%.  Again if more people spend then more jobs will be created.

7. Here is the most important role you can play to get California financially stable again.   You have to become California’s Business Ambassador to the world. Your job it to entice companies to start or expand businesses here in California to create jobs with generous, permanent tax break incentives.

Jerry, if you want to fix the financial condition of California you have to get the unemployment rate down to 5% or less.  If you continue the bad business attitude that Sacramento has had over the years then everything you do, all the bandaids that you put on the wound will not help the wound heal.

8. Finally it is sad that the majority of people that voted you in either were not born yet or did not even live in this country during your last time wrecking the economy in the State Of California.

If you don’t do the things mentioned above then you will be as ineffective as Arnold, Gray and Pete were.  I hope you do not want that reputation to follow you.

I wish you the best in these hard decisions.
RJ
PS incase you are wondering.
I am a Libertarian and I follow the small government, personal freedom, and the opportunity to be everything good that I can be without big government intervention creed.
RJ

Socialism: A Failed Social Economic Business Model. January 11, 2011

December 11, 2011

It is now time to pay the piper as they say.  California and Illinois have the worst credit ratings than any other state in the Union.

Both of these states have been dominated by Liberal/Socialist/Democrats for years that are pro union and anti-business.

Gov. Jerry Brown (D. CA) has announced draconian cuts to welfare related entitlement programs through out the state (I. E. Greece and Ireland).

This will affect the poorest of the poorest in the state that the  Liberal/Socialist/Democrats proudly tout in campaign speeches to represent and protect so that these economically challenged people will vote them back into office year after year.

Even though Jerry Brown is proposing these draconian cuts he is not planning on cutting the HUGE Government/SEIU entitlement/retirement costs that at least California suffers from.

Here is a hardcore fact. There are thousands and thousands of “Baby Boomers” that work for the State of California as well as other states.  Starting this year (2011) Baby Boomers turn 65 and are starting to retire.  When they retire they are going to collect sometimes up to 80% of their salary for the rest of their lives along with health coverage that is 100% funded by tax payer dollars.

This is unsustainable going into the future. Simple math. A growing number of “Baby Boomers” retiring and a dwindling number of people paying taxes compared to people collection pension money and healthcare from the state.  Keep in mind this same scenario that exists at the federal level.

This employee pension time bomb. is going to force two things.

1. California declares bankruptcy that will make all government and Government Union contracts Null and Void.

2. The Fed starts to print money (Inflation that will not lead to new jobs subsequently not generating a new tax base.) to prop up California’s economy.

This will put California’s financial burden on the US tax payer.  That means that someone in Vermont,
Massachusetts etc. are paying to bail out California and maybe Illinois.

The poor get massive cuts and the government employees and government unions are allowed to be paid the crippling entitlement programs that are the biggest costs in running California Government.

Here is Jerry Brown’s Plan, Ready for this?: Jerry Brown wants to spend millions of dollars for a special vote in June to ask taxpayers for millions of dollars in tax increases.

Does that make sense to you?

Jerry Brown has been Governor before for two terms.  The majority people that re-elected him were not even born then or did not even live in this country during his last term of Governor.

So they have no idea of the damage that he did the last time.

Here in California we have a very unusual proposition that was passed on June 6, 1978.  Proposition 13 helps home owners to able to afford and keep their homes.

Jerry Brown states that he has no intention of dismantling Prop 13, however he wants to attack the subsequent affects of Prop 13 to allow local counties and cities to collect additional taxes to shift the tax burden from the state to county and local municipalities. What exactly does that mean?

People are losing their homes and could be subject to additional property taxes that will further exacerbate the rate of home foreclosures in the state of California.

So instead of being an ambassador to business and courting businesses to start and expand businesses with tax incentives in California creating jobs to increase the tax base,

Jerry Brown has decided to punish poor people with entitlement cuts and even worse punish the responsible working class with tax hikes to pay the unions and fund the state pension train wreck.

The bond rating for California has dropped significantly,  Reason? You need taxpayer dollars to payback municipal bonds. When a municipal bond is issued it has to be backed by tax payer dollars to repay the bond when it is due. If the state is broke it can either raise taxes, issue municipal bonds or cut government spending. Those are the choices. There are only bandaids in the interim  to temporarily patch the fiscal budgets of the state of California.

Stay tuned to what happens in California. As they say “As California goes, so goes the rest of the country.”

ST Marie.

Barack Obama’s Destructive Business Agenda July 13, 2010

So today I went to go to my favorite Sabarro Pizza at

1731 N VICTORY PLACE

BUILDING R9

BURBANK, CA 91506

This is what I found.

So what happened here? To be honest I really don’t know.

I do know that Sabarro is a franchise organization.

So why did it close?

1. Land lord raised the rent beyond what the restaurant could sustain.

2. Franchisee was a bad business person and did not run the store properly.

3. Business was just down and could not survive.

4. Local business taxes were to high.

4. All of the above.

Here are the things that I do know that happened.

1. A franchisee lost his/her livelihood and business dream.

2. A given number of people lost their jobs.

3. A great number of future jobs were lost. (Unless the landlord is lucky enough to lease the space to another business.)

4. Loss of future jobs for High School Students or potential future Sabarro franchisees that would have been working there.

5. Loss of sales tax revenue for the City of Burbank, CA

6. Loss of sales tax revenue for the County of Los Angeles.

7. Loss of sales tax revenue for the State of California.

8. Loss of revenue for the food purveyors that supplied the food products that were served.

9. Loss of federal income tax collected from the owner and employees.

10. Loss of Medicare tax collected from the owner and employees.

11. Loss of California State Income tax from the owner and employees.

Ok so here is my point. Barack Obama wants people to think that everything is getting better. Tell that to all the people and their families that lost their job at this Sabarro and all the other business that continue to close everyday. Are new businesses opening up? Of course, But it is safe to say that more businesses are closing than opening.

In the meantime Barack Obama focuses on pissing away tax payer dollars for things like lawsuits against Arizona SB 1070 instead of concentrating  on bolstering small business and creating new jobs.

ST Marie

An Open Letter to Congressman Adam Schiff (D) (Congressional District number 29 of California) Sent 12/20/09 December 20, 2009

Dear Congressman Schiff.

I am 59 years old and I have health insurance. It is expensive. But I am very happy with it. Will I be able to keep it? Maybe. But I know that if I keep it I will be taxed because I have a “Cadillac Plan” and I will be penalized with a tax because I am considered a “Rich Bastard” because I can afford healthcare insurance.

I am so disappointed in the Marxist Socialist Democratic Party. The United States is now a single central party system just like in Communist countries. The way that the MSDR has bought off the votes of Senators is unprecedented in US History. Being originally from Chicago I have grown up with corrupt Democratic Party procedures. These corrupt policies are what Barack Obama brought to the White House from Chicago.

I’m sure you will be an idiot and vote for this train wreck of a healthcare bill that no one, not event the people voting for this know what is all in the bill because is was written by lay people who have no idea what the people of the United States care about. This is a blatant disregard of the of the desires of the citizens of the United States of America. This is legislation that should have been a bipartisan effort instead of being created behind closed doors, excluding Republicans and Independents. You know this was morally wrong and is not Constitutional. If this passes there will be people in office that will be convicted of treason and put in jail. I will join every effort to see that this happens. In any event because you never spoke out against this bill you will be considered in this movement. Is this a threat….No. Is it a fact? You will have to wait and see depending on how your vote. It won’t be me starting this movement but when it happens I will support it.

The fact that you even support the disgusting Nancy Pelosi and the Pelosians is just appalling. Barbara Boxer, Diane Feinstien Et. al. and the SEIU have all but ruined this state of California. Companies are closing and moving from this state in large numbers. The reasons: Excruciating high taxes, crippling EPA restrictions and the corrupt SEIU stranglehold on business in this State. This state will never recover until it is run by any other party except for the Marxist Socialist Democratic Party.

Here is the fact that you have to go to sleep with tonight. “The problem with Marxist Socialist Entitlement Programs is that you eventually run out of OTHER peoples money.”

P.S. Ditto on all of this for “CAP AND TAX.” This is another MSDP train wreck. If you think there is unemployment now wait till businesses get hit with “Emission Taxes.” If you vote for this train wreck of a bill and create “Energy Credits” what do you think will happen? Who will create, trade and control energy credits that are the same as money? Wall Street. Do you thing the corrupt US Government will be allowed to control “Energy Credits.” This will then make the United States officially a Communist Country because the US Government will control everything that that happens in The United States. I want you to vote against any kind of CAP and TAX legislation.

In any event no matter what you do: “YOU ARE FIRED.”

Don’t bother to respond to this unless you say “I agree and I will vote against both the Health Care and the Cap and Tax Train wrecks.” If I get a response from you saying anything else I will consider it a “Canned Response” showing that you do not care about what the the Citizens of the United States really want.

STMarie

California Sales Tax Reaches 9.75% in LA County. (Updated 7/3/09) July 2, 2009

As California’s Economy Collapses, This presents a preview of what will happen in other states and eventually in the Federal Government if Barack Obama’s out of control spending does not stop.

As you have been reading, California is on the brink of financial collapse. The Democrats are more concerned in giving away social benefits than making California business friendly, opening up businesses, and creating jobs. The greater population will not need free or reduced government, social benefits if new businesses are created, existing businesses are kept from closing, and current businesses are allowed to expand with new job creations. Not only will people not need government social benefits, the tax revenues will dramatically increase with the decrease in unemployment.

Lack of jobs, Businesses forced to leave the state because of strict EPA rules and regulations, enormous income, corporate, sales, and DMV Taxes are just creating a business vacuum in this state. So now Measure R kicks in today 7/1/09. This couldn’t have come at a worse time. Governor  Arnold Schwarzenegger has tried time and time again to stop the runaway businesses, but he is a good Republican Governor that is being made to look bad by incompetent, inept, disconnected Democrats that are running this state into the ground by spending money that does not exist.  Wow does this sound familiar? Well they say. “As California goes so does the rest of the nation.  There is only one difference. The State of California Can’t Print Worthless Money Like Washington DC Can !!!!

California’s desperation along with other states are willing to destroy on line or “E-commerce” businesses by requiring Amazon and other E-Commerce businesses to collect state sales tax on items sold by California companies that are shipped outside of the state of California.  This is an enormous expense and a huge burden to companies like Amazon.com, Barns and Noble etc. Again further eroding the business climate in the State of California.

http://online.wsj.com/article/SB124579383785943841.html

Here is the breakdown for sales tax in California:

http://www.boe.ca.gov/sutax/pdf/Pending_Rates.pdf

From the LA Times 7/1/09

http://www.latimes.com/news/la-me-measure-r1-2009jul01,0,183782.story?track=rss

Here is a quote from that article:

“Officials for the Los Angeles County Metropolitan Transportation Authority said that the worst recession since World War II would probably reduce the revenue collected under Measure R from about $40 billion to roughly $38.2 billion during the next 30 years.”

So this is saying that Los Angeles County is stuck with this looser tax from “Measure R” that the Democrats sold to the public for 30 years.  If you are not from California then I’ll explain how this works.

The people in California do not like to have taxes forced on us so we get to vote on whether we pay taxes on certain projects or not. I voted against Measure R because it would be money wasted as usual. Los Angles does need light rail improvements and expansions to reduce freeway traffic. However if  the light rail project becomes a pork barrel project and only goes to the areas in Los Angeles County where the politicians want it to go rather than where it NEEDS to go, it will be a complete waste of money.

Next item is that the County of Los Angeles is also in poor economic state.  I can’t prove this fact to be true, but I would speculate that this last tax increase will end up in the “General Fund” and will not be applied to transportation projects for some years to come until the economy improves.

Yes, there are some very good intentions in Measure R. Let’s face it auto/truck traffic is horrible in Los Angeles and everyone wants it to improve.  But will people use it enough to pay for it?

http://www.metro.net/measurer/default.asp

My point here is that the Democrats have just destroyed the economy here in Los Angeles and California.  People are loosing jobs, businesses are closing. People with money are leaving the state to move to states that have no income tax like Nevada.

The state of California has reached a point of no return. The State of California has a budget deficit of 24.3 billion dollars.  These are the points of no return:

1. The Democrats are forcing businesses to close with high sales, income and businesses taxes. This problem is exacerbated by heavy EPA rules and regulations to even open a business here in California.

2. As jobs are lost, the tax base shrinks as there are less people to pay sales tax (people cut back on buying things), Income tax withholding from checks decreases, people drive less paying less in local gasoline taxes.

3. The democrats think the only way to balance the budget is by punishing the people that are still lucky enough to have jobs with even more taxes across the board.  The budget will never be balanced with this approach.

4. The Democrats have created a “State of Entitlement.” A state where  people can receive public assistace for everything from free education, section 8 housing (http://www.hud.gov/local/index.cfm?state=ca&topic=renting) to free health care at County Hospitals.

5. California has one of if not the largest population of undocumented immigrants from all over the world.  By law these people are not allowed to get Social Security Numbers so they are usually paid in cash and pay no income taxes at all.  If they do pay income taxes it is usually with a fraudulent Social Security number.

6. The EPA requirements for everything from Exhaust Emissions, handling of industrial chemicals to building material content have a crippling effect on profitability, growth, employee hiring and just keeping the business doors open.  I am concerned about the environment just like anyone else, but the government has to much control over these laws that are overkill.

7. Finally the fact that there are just to many people in this state is the major contribution to air, water and ground pollution.

So what can be done?

1. The state has to become 100% more business friendly.

2. Reduce Income taxes so people will have money to go out and spend and build the economy.

3. Reduce Corporate taxes and make it profitable to open and run a business in the state of California.

4. Reduce (not eliminate) the number of “Entitlement Programs.” These are free or low cost programs for people that do not have the incentive to get a job (any job.)

5. Decrease education fees in public colleges so more people can attend thus increasing the cash flow for maintaining the education venues.  Administer some kind of tax reward or benefit to new graduates for the first 2 years as they start in their new careers.

6. This is the tough one.  Make sure that undocumented immigrants from all over the world not just Mexico are not eligible for any state benefits including non emergency medical care, education, welfare, and child welfare.

7. Very, very heavy fines for employers that hire undocumented immigrants.

8. A minimum of a 10 year corporate tax incentive for any company that has been in existence more than 5 years in another state or country to move  to or open another facility in California. Why 10 years? It is an incentive for the companies to stay in California and create jobs here.

9.  There has to be legislation that will limit the power of the SEIU (http://www.seiu.org/splash/) I believe in good wages for talented people. But this Union is very corrupt and rewards incompetent people with high wages. Originally being from Chicago, I grew up with corrupt Democratic “Pay to Play.” The SEIU payed Barack Obama $60.7 Million dollars to play.  This is a common corrupt Union/Politician relationship.

10. This is the most important of all of these ideas.  Create a minimal corporate tax bracket for companies with 100 or less employees. We all know that the most important element in any successful  economy is “Small Business.”

The only way this will ever happen is if the Democrats are voted out of office and the State of California is run by Republicans and Libertarians. Both of these parties understand the importance of small business.

As I have said before time and time again.  As long as the Democrats can keep people uneducated, unemployed, poor and desperate they will always have a voter base.

ST Marie