Posted on 01/09/2017 4:57:11 AM PST by Kaslin
If only it were just an earthquake. We could then just repair some damaged roadways or condemn a couple dozen buildings, then resume our lives. Maybe the Bay Bridge would need a section reattached. Or the last letter "D" in Hollywood would tip over. We'd send over some lumber reinforcements. No problem. This tragedy, however, has no asphalt-rending fault lines, except the ones in government, where the fault lies.
I would like to direct your attention to something boring but infinitely informative regarding the nature of this mismanaged state. Employers who utilize labor pay into the FUTA, or the federal unemployment tax, at a rate of 6% and are credited back an offset of 5.4% that they previously paid the state, leaving a small federal liability of only 0.6%.
However, if the state-run U.I. trust gets overdrawn, as it did in California for going on its third year now, it automatically pulls an emergency loan out from the federal government to service the underfunded account. And if that is not repaid by November 10, and it defaults, then the government forces employers to pay it.
They just defaulted. Our company received a mystery bill in the mail two weeks ago, explaining our new $15,000 owed. We got a shock, as it was not expected. I presume that many employers won't be able to pay it. I'm still not quite sure if we can ourselves, considering how much the minimum wage hikes, the new mandatory paid sick leave, and Obamacare have impaired our cash reserves.
(Excerpt) Read more at americanthinker.com ...
Unpossible! Øbama told us this was the best economy evah!!!
No bailouts. No aid. No nothing. Texas didn’t get anything in 1986 when the state basically collapsed with the oil market crash, and California laughed. California should get the same.
And the ignorant progressives bought it hook line and sinker.
I agree
#3. You are exactly right!
Wait, I thought California was heaven on earth! How could this happen? What is going to happen?
Hint: CA is coming after $$ from the other States....unless Congress has the cojones to stand up to an outrageously large congressional delegation.
One solution: cede CA to Mexico, and move The Wall north, Just sayin’. Let them use the peso.
Actually, let me correct that a little. CA should get one thing - a multi-agency Federal audit with a parallel audit being conducted under the auspices of the Feds by a third party accounting firm.
Let’s find out where all the Federal money that was given to California has gone.
A lot of their most powerful Congresscritters are retiring. Their delegation is quite weakened and there *are* enough states pissed off at them to cancel them out. They have 53 seats in the House... but Texas has 36 all by itself.
Let the Hollywood rich liberals pay the difference.
I think with Trump now President, it will force reforms at the Federal level that will at least reform the agriculture and petroleum industries.
Just think: if only Democrats etc had honored the Constitution and we had none if these illegitimate programs at the federal level....
Maybe Meryl Streep can ‘gift’ money to California to offset all the employers who will be going under? I mean, she obviously believes in the direction of California, so why it underwrite it?
Support CALexit 2018
And considering the reason, or part of the reason, oil prices collapsed was that Ronald Reagan and the King of Saudi Arabia colluded to drive down the price to bankrupt the the Soviet Union which depended on oil sales for hard currency you could make an argument that Texas, Oklahoma and Louisianan may have deserved some help.
BTW I’m glad Reagan did what he did.
California is the first one to emerge with fiscal cracks invading the farcical narratives of Hopeychangey Land.
Even a child can add 2 plus two and get four. Why does the state gvt in CA insist the answer is five?
Does that mean the California sanctuary cities are still on?
Actually, it may be quite fun to watch how the Trump Administration responds to demands for ‘earthquake relief’. I doubt they’ll simply fork over $15 Billion or whatever is needed to again bail-out their budget. Instead they’ll add a few strings, like suspension of state Prevailing Wage laws, state environmental laws, and everything else they can think of that drives up costs.
...and they’ll simply say “take it or leave it”.
At least that’s my hope with our guys.
I wonder if any politically connected businesses in CA are exempt from this tax burden. And is it just private sector employers, or are government employers included.
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