Tag: California

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deficits and debt tax policy

Deadbeat California

Gavin Newsom, California

The injustices pile up so thick and fast that one can’t really keep track. Some state governments are especially prolific in producing them. Governments like the Deadbeat State, formerly known as the Golden State.

Now businesses in California must pay the price for the state government’s profligacy during the pandemic, when it borrowed $20 billion from the federales to help pay unemployment benefits. California is refusing to repay.

In the budget proposal for 2023-2024, $750 million had originally been set aside to begin repaying this debt. But Governor Gavin Newsom killed the provision. So, in accordance with federal regulations, businesses must take up the slack. Starting in 2023, the unemployment tax rate that businesses will pay, which had been 0.6 percent, is being increased by 0.3 percent until the loan is repaid.

“California is just not really an employer-friendly state,” says Marc Joffe of the Cato Institute. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”

A major contributor to the size of this debt is the state’s failure to act to prevent massive fraud in filings for unemployment benefits. LexisNexis estimates that fraudulent payments amount to more than $32 billion.

California taxpayers must pay for this unsalutary neglect one way or another. But what Newsom has done ends up penalizing businesses in particular. 

Yet another reason to avoid doing business in the state.

This is Common Sense. I’m Paul Jacob.

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folly free trade & free markets too much government

Make Them Pay

California, Commiefornia, socialism, electricity

Thanks to renewable-energy mandates and other regulations, California muddles along with crippled power markets in which rolling blackouts are routine when demand for electricity is high and sun and wind are unavailable.

Apparently, this and other burdens on energy usage in the Brownout State are insufficient to fully immobilize everybody who relies on things that need to function. So the state’s utilities are preparing to also impose socialist billing on its customers.

Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison are proposing that the flat-rate component of power bills be based on income. Once regulators sign off, there is to be an ongoing transfer of wealth from richer to poorer.

The utilities aren’t acting independently. 

They’re obeying a legislative mandate.

In addition to a flat-rate component of utility bills that would be $15 for the poorest customers and $85 for the wealthiest customers, there would still be a component based on power consumption. So the impending looting of nonpoor customers could be worse.

The socialism isn’t full bore yet.

But I doubt that initial limits on this redistribution agenda would remain intact were the scheme implemented and to persist.

In addition to other objections, there is also the matter of how utilities will know their customers’ incomes. Will customers be required to report and prove these incomes? The central planners presumably regard this invasion of privacy as not worth fretting about. 

They’re too busy creating perfect equality . . . of brownouts.

This is Common Sense. I’m Paul Jacob.

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First Amendment rights free trade & free markets too much government

The California-Canada Connection

Canada, California, Medical License, consensus, censorship

What do California and Canada have in common, aside from bone-chilling temperatures?

Well, the fact that they’re trying to chill the discourse of doctors.

In California, a new law empowers medical boards to punish doctors who spread “misinformation” about COVID-19. The misinformative nature of a stated view about the pandemic is allegedly proved by the mere fact that it contradicts a putative scientific “consensus.”

Such laws rely on misinformation for their very existence. 

When coping with complex, incomplete, sometimes murky evidence, do scientists and others ever simply disagree, even fundamentally, on the road to scientific “consensus”? Can a consensus ever be wrong? Does anybody ever hew to an asserted consensus out of fearful desire to conform rather than honest intellectual agreement?

To ask these questions is to answer them. But let’s move on.

To Canada — and the case of Dr. Jordan Peterson, whose professional status in the country is being jeopardized because of medical and/or political views, like opinions criticizing “climate change models,” “surgery on gender dysphoric minors,” and Canadian officials who threatened “to apprehend the children of the Trucker Convoy protesters.”

Stated on social media, these opinions are apparently incendiary enough — i.e., candid enough — to vex Canada’s powerful medical censors.

According to Peterson, the Ontario College of Psychologists demands that he submit to “mandatory social-media communication retraining” because of his views. If he doesn’t comply, he may lose his license.

Such repressive impulses, he says, are “way more widespread than you might think.”

It’s cold outside.

This is Common Sense. I’m Paul Jacob.

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Accountability election law

Democracy by Tortoise

tortoise, California vote counting

It may take three weeks!

The counting of ballots for 2022’s General Election was pretty much wrapped up on election night. In most states. Yet, a week after election day, California election officials have barely counted half the ballots cast in a number of very close congressional districts as well as other state races.

“I anticipate it’s going to take at least a couple of weeks,” offered a Sacramento County Elections spokesperson, “if not three weeks, to process the bulk of the ballots that have come in.”

Why the tortoise pace?

“In short,” KTLA-TV in Los Angeles reports, “it’s a product of the state’s massive population and laws that make it easier and more convenient for every eligible voter to be heard.”

The Big Population argument falls flat. California has more votes to count but likewise more people available to count them. Nor does California have higher voter turnout or rules so different from other states that count much faster. 

California law allows ballots to be mailed as late as election day, which does indeed slow the counting. That could of course be tightened up. But it seems the main thing California might do differently is work harder at getting the votes counted. State law only requires that county election offices have folks working six hours a day, with weekends and holidays off. 

“We’d rather get it right,” says Secretary of State Alex Padilla (D), “than get it fast.”

Mr. Secretary, the problem is that the longer the election drags on without a winner being declared, the less confidence the public has in the process. 

Get it right. And fast.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets national politics & policies

The Biden’s War on Independents 

California, contractors, independent, legislature

They know. They aren’t complete idiots. When enemies of the market routinely try to stop people from earning a living through restrictions like minimum wage laws and arbitrary licensing to thwart such dangerous activities as hair-braiding, few are ignorant of the disastrous consequences.

Case in point? 

The Biden administration is on the verge of using a federal version of California’s AB5 law to mass-slaughter the opportunities of millions of gig workers and freelancers. The administration hasn’t managed to do it legislatively. So it’s trying to inflict the damage with a Department of Labor regulation.

The idea is to stop companies from classifying independent contractors as independent contractors. Passed in California a few years ago, AB5 prohibited companies and many contractors from working with each other unless companies took them on as regular employees.

To avoid the costs of doing that, many companies instead simply ended their relationships with hundreds of thousands of gig workers. For example, Rev, a transcription service, stopped working with all freelancers residing in California.

California lawmakers knew how destructive AB5 would be when they passed it — proof-positive being the many exceptions for politically connected groups that were stipulated as part of the law. AB5 has now been repealed and replaced by AB2257, which increases the varieties of worker exempt from the new requirements. But it still leaves many other people, like California-based truckers, in legal limbo.  

It’s okay though, because all truckers do is deliver the stuff that all the rest of us need to survive.

This madness should not be imposed on everybody throughout the country.

And certainly not by back-room bureaucratic machinations.

This is Common Sense. I’m Paul Jacob.

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government transparency too much government

Last of the Big Spenders

California, spending, budget

The state government of California spends a lot of money. But how much and on what?

That information has, apparently, been a state secret. 

Until now.

For years, a watchdog group called OpenTheBooks.com has been working to discover and disclose government spending in the United States. Its efforts were enabled by 2006 legislation sponsored by Senators Tom Coburn and Barack Obama to establish a website, USASpending.gov, that details federal expenditures. Until his death in 2020, Coburn was the honorary chairman of OpenTheBooks.com.

The group reports that in 2021, it filed some 47,000 Freedom of Information Act requests to obtain data on some $12 trillion of government spending. So they’ve been busy.

California is now the fiftieth state whose spending is being made public in detail.

The state had long resisted requests for info about its spending. State controller Betty Yee said that it was impossible to comply with such requests because California has no central database of government payments. Compiling the data would be too darn hard.

The auditors at OpenTheBooks.com performed the chore instead, filing requests for public records with each of 469 state-government entities.

According to founder and CEO Adam Andrzejewski, “It was a historic knockdown, drag-out dogfight that lasted a decade and spanned the last two California controllers. Since 2005, the state invested $1.1 billion in accounting software, yet still couldn’t publish a complete record of state spending.”

Various budgetary items will doubtless prove controversial — now that they are publicly known.

This is Common Sense. I’m Paul Jacob.

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