California Unions Paid Millions to Raise Taxes Resulting in Negative Economic Consequences

California Prop 30Thanks California Prop 30 Supporters for Making the State #1 in Taxes
Soquel by the Creek@Twitter

On Wednesday I wrote here that Gov Jerry Brown’s tax hike had negative economic consequences and is a contributing factor why California is ranked as the worst state for business in 2014

California’s Comeback Miracle Turns Out to Be a Mirage — Gov Brown’s Tax Hike Has Negative Economic Consequences

New IRS Form Proves That Obama Lied About Individual Mandate Surtax

Incomes TaxesFederal Income Tax Failure –Image: J. Jacobs@Twitter

(ATR) On Thursday, the IRS released a slew of new tax forms–the new draft Form 1040 shows a new ObamaCare surtax line has been created for payment of the individual mandate surtax.

ObamaCare TaxesNew IRS Draft Form 1040 Proves that Obama Repeatedly Lied About Individual Mandate Tax –Image: Elisabeth@Twitter

President Obama repeatedly:

(a) denied that the ObamaCare surtax was actually a tax;

(b) claimed that he would not raises taxes on the middle-class;

President Obama is a pathological liar.

CBO Subsequent to ObamaCare Changes, Says it Can Not Forecast ACA Impact on Deficit

ObamaCare LieGotta Love It When ‘Team Obama’ Puts Their Lies in Writing
Image: PolitiBunny@Twitter

(The Fiscal Times)  One of the Obama Administration and Democrats major selling points of the new health care law was that “ObamaCare is projected to cut the national deficit by over $200 Billion during its first 10 years and over $1 Trillion over the next two decades…” however not according to the Congressional Budget Office.

In a little noticed footnote first reported this week by Roll Call updating estimates of the effects of insurance coverage provisions of the law, the agency headed by Douglas Elmendorf acknowledged, that neither the CBO nor the Joint Committee on Taxation (JCT) could determine precisely how scores of provisions–would impact on longterm government spending.

“CBO and JCT can no longer determine how the provisions of the ACA that are not related to the expansion of health insurance coverage have affected their projections of direct spending and revenues,” the CBO wrote. “The provisions that expanded coverage established entirely new programs or components of programs…Isolating the incremental effects of those provisions on previously existing programs and revenues four years after enactment of the ACA is not possible.”

As the Roll Call story noted, the CBO based its original estimates of long-term deficit reduction on the assumption that ObamaCare which included Medicare cuts and numerous new taxes would be implemented as written, that was before a blizzard of Obama Administration changes and delays in deadlines of the implementation of the health care law.

Be Sure to Thank Liberal Dems in Sacramento as Southern California Rental Property Costs Expected to Continue to Rise

For Rent in MalibuMalibu Rental –Image: AceRenting@Twitter

(LA Times) Rental home costs are going to continue to rise–nearly 78% of Southern California apartment building owners say they plan to hike rents in the next 12 months according to a new survey from real estate broker Marcus & Millichap about 22% plan to increase rents by at least 3%

On the 04 June, I wrote here that over half of Americans reportedly are already struggling to keep their homes and the problem is only going to get worse.

LA Rental PricesIn April, ‘Curbed LA’ Published a Chart Showing the Best & Worst Rental Prices Throughout Los Angeles Area

Say Good-Bye to Prop 13 ?

In May, The Sacramento Bee–Capitol Alert reported after decades of wrangling by Democrats (that just can’t seem to confiscate enough of taxpayers money to spend, I digress) during a hearing of the ‘Assembly Revenue and Taxation Committee’ lawmakers agreed on changes to the 1978 law governing reassessments of commercial property when it changes hands, citing one of their old stand-by favorite liberal arguments ‘fairness’ of the tax system, as if voters were not smart enough when Prop 13 passed by a 2 to 1 margin.

Will confiscating more money from commercial/business property owners actually result in more “fairness” that Democrats like to claim or just raise the costs of doing business and make things (such as rental costs) more expensive?

The latter of course, as Forbes correctly points out–Corporations (such as rental property owners) don’t pay taxes they pass on their business costs and expenses to their customers or in this case, to their tenants in the form of higher rents.

Why is it that California voters continue to reelect liberals to Sacramento is anyones guess–Just as, how many licks does it take to get to the ‘Tootsie Roll’ center of a “Tootsie Roll Pop” the world may never know?

Related: Squeezing Out the Working Class Through Higher Rents

Lack of Housing Trouble–That Might Be Trouble –LA Register

What Democrat/Progressives & MSM Won’t Tell You About the Dubious ObamaCare Enrollment Data

Obama to Unveil New ‘Cap & Tax’ Regulations on Monday, For the Children

Obama New RegsWannabe King Obama Will Bypass Congress (Again) to Implement
his Previously Failed ‘Cap and Tax’ Plan

(Bloomberg) President Obama said today that his administration’s plan to combat global warming, climate change climate disruptions will be unveiled next week is for the children.

In 2009 and with a Democrat controlled Congress, Obama’s “Cap & Tax” plan was met with resistance and was criticized by then West Virginia Democrat Robert Byrd and died in the Senate without further consideration.

Flashback: Remember in January, 2008 when Obama told the San Francisco Chronicle that under his plan energy costs will necessarily skyrocket.

Obama’s new environmental regulations all comes at a time when the nation’s economy stalled in the 1st Qtr with GDP falling to -1%, growing inflation fears with food prices up in 2014 by 19% and a shrinking workforce according to the Bureau of Labor Statistics, which reports the labor participation rate in April fell to 62.8% unseen since Jimmy Carter was president 35 years ago.

How long will it be before Obama shatters that dismal labor force participation record with his disastrous new regulations that already steals more than $1.8 Trillion from a struggling, anemic economy teetering on the brink of a triple dip recession?

Related: Cap and Trade: A Scam Based on a Scam –Canada Free Press

White House Turns Blind Eye on Democrats Who Oppose Climate Rules

IRS Bruiser to Job Creators: Pay $100 Penalty Per Day $36,500 Year for Each Employee Dumped into ObamaCare Exchange

ObamaCare IRS

(NY Times) Many employers (job creators) thought they may be able to hold on to employees by shifting the costs of health insurance premiums to them by providing their workers with a tax-free contribution so they could buy their own health insurance wherever they may please–what could be wrong with that?

Not so fast according to the Obama Administration which has nixed this plan in a new IRS ruling that forbids employers from dumping their employees into the ObamaCare exchanges by levying a $100 a day fine ($36,500 annually) for every employee that is provided money to purchase their own health insurance–thereby raising the costs on businesses to actually maintain employment levels.

“For decades, employers have been assisting employees by reimbursing them for their health insurance premiums and out-of-pocket costs,” said Andrew Biebl, a partner in CliftonLarsonAllen, LLPAccountants based in Milwaukee. “The new federal ruling eliminates many of these arrangements by imposing an unusual punitive penalty.”

Raising the costs and regulations on American businesses does not incentivize companies to add more jobs or increase wages, according to a recent Congressional Budget Office report on ObamaCare which confirmed what many of us had already believed, that the ACA is having a tremendously negative impact on economic growth.

Besides the latest IRS regulatory burden that ObamaCare will have on economic growth and opportunity, the Natl Federation of Independent Business Research Foundation estimates the ObamaCare ‘Health Ins Tax’ will result in a further reduction in private sector employment of 152,000 to 286,000 jobs, with California being hit the hardest and a loss of between $20 to $33 Billion of economic activity by 2022

ObamaCare Health Insurance TaxObamaCare ‘Health Ins Tax’ Could Cost Up to 286,000 Jobs

When even the Federal Reserve admits that ObamaCare is hurting the economy, its long past time that it must be repealed.

So Sad! My Beloved State of California Ranks as Worst State for Business in 2014

Texas Best State for BusinessTexas Continues its 10 Year Historical Position as the Best State
Overall for Business in 2014

Florida Second Best State for BusinessFlorida Ranks #2 is Edging Up and Even Overtaking Texas in its
Quality of Living Environment

California Worst State for BusinessCalifornia Ranks Dead Last as the Worst State for Business in 2014

(Chief In the 10th annual survey of CEO’s concerning their views  of the best and worst states for business, over 500 CEO’s across the United States responded, grading states which they were familiar on measures including taxes and regulatory regime, the quality of the workforce and the quality of the living environment.

California, New York and Illinois continue to rank among the worst three states for business with virtually no change from 2013

What CEO’s are saying about California:

  • California goes out of its way to be anti-business and particularly where one might put manufacturing and/or distribution operations;
  • California continues to lead in disincentives for growth businesses to stay;
  • California’s attitude toward business makes you question why anyone would build a business there;
  • We relocated our corporate office from Los Angeles to Atlanta in 2006 largely because of the regulatory and unfriendly tax environment in the State of California. We considered Dallas but settled on Atlanta for customer-related and other secondary or marginal reasons. Would make the same decision if I had to do it all over again;
  • California could hardly do more to discourage business if that was the goal. The regulatory, tax and political environment are crushing. The only saving grace is that there are still a lot of affluent areas that drive local economic zones but the trend line on these is not good for the mid to longterm.

Read full report here from Chief

California Senate Dems Want to Disincentivize Wealth By Taxing Success, How Many More Companies Will Plan Their Exodus?

California Socialism

Socialism 101 –Image: Read My Mind

(WaPo) Last week, a California State Senate Committee not only discussed what they deem to be ‘economic inequality’  but by a vote of 5-2  it recommended to the full Senate, a bill that would raise taxes on companies which it determines, has a high disproportionate pay gap between corporate executives and employees.

Interestingly just this week Toyota Motor Sales & Toyota Financial Services announced  they will be vacating its headquarters from Torrance, California to the State of Texas which offered the company some $40 Million in tax incentives together with 30 years in the ‘Lone Star State’ tax free–end result, the City of Torrance, will be left a gigantic hole from losses of tax receipts in their budget they will have to somehow fill and the State of California will be losing some 3,000 more good paying jobs in addition to tens of millions in tax revenue that is gone forever.

Liberal/Progressive ideology may buy votes in my beloved deep blue State of California but it most assuredly doesn’t create a positive business climate.

In February, SF Gate reported that a new study conducted by Bain & Co for the California Business Roundtable–representing large corporations in the state found just under 60% of California business leaders said they have policies in place to restrict growth in the state and move jobs to other states–ironically the State of Texas was cited as the most frequent destination.

Another group of business executives, said their policy is to avoid adding jobs in California at all, except when absolutely necessary–the Bain study concluded, the cost of doing business in California is 30% higher than in an average Western state, together with the complexity of California’s environmental, labor and other regulations, the threat of litigation and delays in obtaining permits hamper operations, all create an anti-business atmosphere and a disincentive to continue to do business in California.

California already with the highest personal income tax in the country with a top rate of 13% compared to 0% for the State of Texas and a regulatory structure that treats businesses especially manufacturers as enemy combatants writes Investors Business Daily California has seen more than 250 major companies exit the state since 2011 and these problems are only destined to get worse, should Liberal/Progressive Democrats in Sacramento have their way of disincentivize wealth by taxing success.

How many more wealth creators (employers) and job opportunities will flee California to make somewhere, anywhere else their Golden State?