November  2008 ISSUE

We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts!

So Goes California, So Goes GM, So Goes the US:  happy belated Halloween!

Posted by: CotoBlogzz | 11/12/2008 10:36 AM

The Joe  Morabito,  the Small Business Owner's Perspective

California Governor, Arnold Schwarzenegger has proposed raising sales tax in California by 1.5% which means  sales tax in Orange County will grow to 9.75%.  Los Angeles County will be 10.75%.  This tax increase is to help fund an $24 billion deficit.  In years past rather than cut spending, our liberal Governor and left wing Democrat controlled legislature have borrowed billions of dollars to fund annual operating expenses by selling long term bonds that are supposed to be used to fund things like schools, bridges, roads etc. with a 50 year life.  In addition, California voters keep approving long term bonds to fund everything from Stem Cell research to a new high speed train connecting LA and SF which is completely unnecessary thereby creating additional mortgages that must be paid by the taxpayers of California.  

Keep in mind that California has the highest personal and corporate income tax rates in the country at about 10%.  Our property taxes are among the highest in the country probably averaging $5,000 - $10,000 per home for a 2,000 square foot home.   We pay all sorts of fees and charges.  The state brings in about $100 Billion in taxes each year and that does not include sales and property taxes that are billions more; yet the Governor and Legislature simply cannot live within these monies.   We have 250,000 people on the state payroll including 13,000 attorneys; but not including local government employees like teachers, fire and police.  There are all kinds of crazy programs and job killer laws that keep growing.
 
Public employee unions are bankrupting the state by insisting on contracts and wages that are not sustainable, such as the 3%-50, or even the CTA:  While in South Korea, November 13 is the day that high school seniors take the college entrance test, and many offices, including the stock market open an hour later than usual to keep the roads free for students on their way to the test, and planes cannot land or take off at the nation's airports, so students can focus on their test, on November 4, the CTA actively worked on mounting fierce opposition to traditional values, including the support of pre-planned murder.

The point is that even though the state takes in huge amounts in tax revenues because our taxes are so high, our state government just spends more.   And, every time they raise taxes, they actually generate less revenues because many companies just move out of California.

Obviously, many business have moved many jobs out of California because of high corporate taxes and job killer bills.  All of this should be a lesson for the United States as president-elect Obama wants to add a trillion dollars in new spending, all sorts of anti-business regulations and raise all sorts of taxes at a time when the federal deficit is $10 trillion on the books and $70 trillion off the books. 

Then there is Detroit, where the same group  who balked at federal legislation mandating fuel efficient and alternative energy cars, because ".... regulations would make Detroit less competitive", so that GM and Detroit could continue building inefficient behemoths, are the same ones now lobbying to bailout Detroit, so they can continue to build  inefficient behemoths.   As envisioned, the GM bailout combined with organized labor's demands for card check - in essence, a demand  to supplant the 1935 National Labor Relations Act requirement of a secret ballot with what labor officials call a "card check." Under this system, if a majority of workers simply sign a card, no secret-ballot election would be held and the union would automatically be authorized. Everybody would know who voted and how, including the local union representatives who wield great influence over workers' futures - and we know how the story ends in this scenario.

A prominent figure in the recent camping pronounced that this was the first time she was proud to be an American.  In this case, for the first time in my life, I fear for our country and our young people.  The only way out of this mess both in California and the US is to grow the economy by cutting taxes and government spending not creating new entitlements.   We have to apply pressure to all politicians of both parties to deal with this mess.  

What we are facing is really scary!

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