Friday, January 16, 2009

California Financial Crisis Mirrors What Bush Is Leaving Obama


I've already acclimated myself to the reality of a Schwarzenegger financial disaster in California not unlike Bush's in the rest of America. I'm not getting a state tax refund this year; just an IOU. The state Controller, a good guy, John Chiang said he's got no choice but to suspend $3.7 billion worth of tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1 because of the cash crisis the state is facing. There's a $42 billion budget deficit.

I can handle not getting my tax refund. I feel a lot less comfortable about the $300 million in cash grants for needy families and the aged, blind and disabled and $13 million in grants for college students. With unemployment soaring and with more and more families using up their unemployment insurance-- even with the extension-- a strong safety net is more needed than normally. But there isn't one.

Any why not, you wonder. In today's Washington Post there was a report by Carol Leonnig about how some of our biggest corporations avoiding their share of taxes by using off shore banking havens. "Some?" Well... actually most.
A majority of America's largest publicly traded companies and the U.S. government's largest federal contractors-- including some receiving millions in federal bailout money-- use multiple subsidiaries in offshore tax havens to conduct business and avoid paying U.S. taxes, a new report finds.

The new Government Accountability Office (GAO) report, released today by Sens. Byron L. Dorgan (D-N.D.) and Carl M. Levin (D-Mich.), lists Citigroup and Morgan Stanley as having set up hundreds of tax haven subsidiaries, along with American International Group and Bank of America. Also in the tax-haven list are well-known companies and such federal contractors as American Express, Pepsi and Caterpillar.

How big of a deal are we talking? Dorgan and Levin estimate this crap is costing the federal government around $100 billion each year. Now you know me with the capital punishment. But I swear, shoot a couple banksters and CEOs and this just will stop happening. Oh, and confiscate all their assets too. You remember the Members? They warned us back in 1978 with this Steve Lillywhite-produced song, written by Jean Marie Carroll, a former banker himself:

Thanks to David B in comments-- we have an updated version by Carroll.

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At 7:07 AM, Anonymous Anonymous said...

Yeah, that'll fix it! Shoot a couple of CEO's, conviscate their assets,.... next thing you know the un-employment rate will be 50%+ in this country cause all the major companies will move their operations completely out of this country.
Of course, Obama will fix it, he'll make everybody union,... the minimum wage will be $50/hr. Of course, the unemployment rate will still be 50%,.... but if you could find a job,.... you'd get $50/hr
Jar of peanut butter, loaf of bread,.... $58.59,.... gotta pay that bag boy a living wage ya know!
You left wing socialists have to understand something,... we're a free country. Those businesses are free to do business here, or go elsewhere. If you want Cuba's ecomomy, fine, move there, you have that right,.... If ya change your mind when you get there, you can always swim back on an inner tube over 90 miles of open ocean after you get out of prison,....
....gotta love free choice

At 10:48 AM, Anonymous Anonymous said...

The same Mr. Carroll updated Offshore Banking Business very recently to become International Financial Crisis

Was a kick to see the song updated with timely lyrics! Just under 4 minutes in if you're impatient.

At 12:15 PM, Anonymous Anonymous said...

Anonymous would never be able to speak again if logic were a requirement for opening one's mouth.

Jeepers anon, how many logical fallacies can you count in your own rant, not to mention the historical inaccuracies?

If you don't know what you are talking about, it is best to just keep your deficiencies in reasoning capacity to yourself. Really, do yourself a favor, watch listen, and learn.

At 4:13 PM, Anonymous Anonymous said...

Get real about the problem. It is not democratic or republican, it is terrible forecasting. The bottom line is that California has experienced more people leaving the State than coming in for consecutive years. In addition, the State is far too employee friendly. Large corporations do not want ot operate here.

The ridiculous amount of social programs present in the state also do not help eliminate the problem.

To net it out, we the people are not running this State, the politicians are. They all should be fired; every last member of the California State Senate, the Governor and Leutenant Governor.

IOU's for our money are completely unacceptable. In order to force the Senate and Governor to reach a deal on the budget, we need to show them we are serious. Please ask everyone you know to change their State of CA number of dependants at work to 99. This will eliminate incoming funds and further constrict the cash situation. This will force the politicains to solve the problem versus using taxpayers as a short term fix.

At 9:58 PM, Anonymous Anonymous said...

The solution is politically incorrect so therefore it will never be implemented.

At 12:26 PM, Anonymous Anonymous said...

The International Financial Crisis is Now a New members Single on iTunes and amazon... Three Versions including a Reggae Rap... By Nicky Tesco,,, This is Great.....

At 12:27 PM, Blogger lapt0p said...

The International Financial Crisis is Now a New members Single on iTunes and amazon... Three Versions including a Reggae Rap... By Nicky Tesco,,, This is Great.....

At 12:51 PM, Anonymous Anonymous said...

Ohhhh, I see. So, the reckless spending in California is Bush's fault? Gotcha! The huge taxes increases made by the two state senators (both democrats) are Bush's fault? Gotcha! California is the perfect example of horrific, reckless Democrat spending and now taxes are through the roof in effort to cut the deficit. This has nothing to do w/ Bush as he is not the one governing the state and taking part in the states legislation. Wake up you misinformed fool. DEMOCRATS HAVE CREATED THE CRISIS IN CALIFORNIA! Thus, people are leaving the state in droves!!!

At 2:34 AM, Anonymous Wes said...

California, Detroit, and to a lesser extent, New York, are great examples of what happens when Big Government tax and spenders try to take your money and run your life. The people who actually pay the bills finally get fed up and LEAVE.

Just got done reading about the smog nazis in Cali, too. Not only can you be pulled over and harrassed if they "think" you modified your car in any way, but at the testing center, they'll make you remove everything without a CARB sticker on it, including gauges.

You want a coolant temp gauge on your dash instead of the factory dummy light? Too bad. Remove it. Unreal. What a godawful state California must be to live in.

At 11:52 AM, Anonymous Anonymous said...

You don't think that perhaps a corporation avoiding taxes to become more profitable might be a good thing from a capitalism perspective? I've worked at companies that were crippled and closed down because of taxation - how exactly does THAT help the economy?

Here's a thought - if you wanting to point fingers, how about the MASSIVE amount of funds the US government throws into the military budget every single year? I'd wager that far outstrips any lost revenues from taxes.


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