Stmarie’s Weblog

2012 Election Information

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

 

American Recovery and Reinvestment Act of 2009 August 19, 2010

I want to talk about the American Recovery and Investment Act of 2009.

In my travels I came across this project in Pismo Beach, California

Ok so let me start by saying that I am all for improvements for local municipalities. It is really nice to see improvements that are about safety and are visually and ergonomically pleasing.

However I do not want these improvements to be paid for by federal tax payer dollars.  This project being built is using money from a tax payer in Detroit, Michigan or Beloit, Wis or what ever other town or city that federal tax payer dollars come from. I want local projects to come from either local county, city tax payer dollars or local bond measures.

Ok so why federal tax payer dollars and not local taxes or bonds?  Well as you know California just like so many other states is broke. We have a liberal government that has run this state for years that believes in high taxes, and very strict EPA restrictions. In other words California is not necessarily business friendly. As our economy fails in California so does the tax base from which projects like this are funded locally. To make matters worse the state of California’s credit rating is very very poor.

http://latimesblogs.latimes.com/money_co/2009/02/california-cred.html

So what does this mean?  Well if California’s credit rating is bad then investing in any local or municipal bonds would be a very bad investment.  Why? There is not enough tax revenue to pay back the bond to the bond holders.

Why is there not enough tax revenue? Because there is high unemployment, upwards of 12.3%

http://www.edd.ca.gov/About_EDD/pdf/urate201007.pdf

OK so you read this and say, Well the EDD says the number of unemployed is down, Isn’t that good?  Well no.  The problem is that the EDD can only count the people that are actively collecting unemployment. The EDD cannot count the people that have dropped from the EDD system and have given up on looking for a job. So the real unemployment rate is more like 15-18%. If you count those that have dropped out from the system.

Ok so where am I going with this?

Did this grant money from the ARRA create jobs.  Yes it did. It created temporary union construction jobs that will end when this project is done.

Did the grant money create any full time sustainable jobs?  Sort of.

Notice in the plans above there are no provisions for any private owned businesses on the  pier.  Bait Shop, Restaurant, Souvenir Shop etc. Something that will employ people and generate sales tax income for the city of  Pismo Beach.

So what jobs did this create?  Well someone has to maintain this facility, paint, bathroom cleaning etc.  So maybe it will create a few CITY GOVERNMENT jobs to be paid with either state, county or city taxes to maintain this facility.  But where is that money going to come from?  Another hand out from the federal government?

There is always the possibility that the City of Pismo Beach could hire an outside contractor to maintain this facility.  That would create jobs in the private sector……but that maintenance contractor would still have to be paid with local or state taxpayer dollars.

If there was an outside contractor hired to do the maintenance on this new facility, how would they get the contract?  How much would they charge and who is the contractor? Will this be another SEIU involved organization that will continue to rape and pillage the local and state governments? Is there any Nepotism involved here?

Why would I even think of Nepotism?  LOL I was born and raised in Chicago and I have been surrounded by corrupt, usually Democratic politics my who life and now we have it running rampant in Washington DC.

Again I love the idea of new and improved public facilities funded by local tax dollars.  I just have to ask the person that is reading this that lives in Bridgeport, Connecticut how are they going to enjoy the fruits of their federal tax payer dollars being spent in Pismo Beach, CA?

ST Marie

 

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

california_tax_hike_7-1-09

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