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Chairman of the Federal Reserve – Ben Bernanke is skewered (The Federal Reserve is a privately held corporation in charge of our monetary policy).

Chairman of the Federal Reserve (corportation) Ben Bernanke gets skewered!

Wikipedia – Federal Reserve (Click Here)
Wikipedia – Current Federal Reserve Chairman – Ben Bernanke (Click Here)

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Video – The making of “The Forgotten Man” painting by Jon McNaughton

Video – The making of “The Forgotten Man” painting by Jon McNaughton

Click here for – Mouse over details on the painting of “The Forgotten Man”

Jon McNaughton Main Web Site (Click Here)

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Someday the Chinese will…..

Someday, the US citizen may be the worker of choice for the Peoples Republic of China.

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Where are the Jobs? The Parallels between Today and the Great Depression

Where are the Jobs? The Parallels between Today and the Great Depression

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Coming to a socialist state near you!

California Is Broke – 19 Reasons Why It May Be Time For Everyone To Leave The State Of California For Good

Original Posting – Click Here

Back in the 1960s and 1970s, there was a seemingly endless parade of pop songs about how great life was in California, and millions of young Americans dreamed of moving to the land of sandy beaches and golden sunshine.  But now all of that has changed.  Today, millions of Californians are dreaming about leaving the state for good.  The truth is that California is broke.  The economy of the state is in shambles.  The official unemployment rate has been sitting above 12 percent for an extended period of time, and poverty is everywhere.  For many Californians today, there are very few reasons to stay in the state but a whole lot of reasons to leave: falling housing prices, rising crime, budget cuts, rampant illegal immigration, horrific traffic, some of the most brutal tax rates in the nation, increasing gang violence and the ever present threat of wildfires, mudslides and natural disasters.  The truth is that it is easy to understand why there are now more Americans moving out of California each year than there are Americans moving into the state.  California has become a complete and total disaster zone in more ways than one, and an increasing number of Californians are deciding that enough is enough and they are getting out for good.

Sadly, the state of California is facing such a wide array of social, economic, and political problems that it is hard to even document them all.  It is really one huge gigantic mess at this point.

Just consider the following facts about what life is like in the state of California today…. 

#1 Unemployment in the state of California was 12.4% in September - one of the highest rates in the nation.

#2 The number of people unemployed in the state of California is approximately equivalent to the populations of Nevada, New Hampshire and Vermont combined.

#3 Not even state government jobs are safe in California these days.  Last month, government agencies in California slashed a total of 37,300 jobs.

#4 California has the third highest state income tax in the nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.

#5 California has the highest state sales tax rate in the nation by far at 8.25%.  Indiana has the next highest at 7%.

#6 Residents of California pay the highest gasoline taxes (over 67 cents per gallon) in the United States.

#7 Even with all of the taxes, the budget deficit for the California state government for the current year is approximately 19 billion dollars.

#8 According to an article in the Wall Street Journal, California’s unfunded pension liability is estimated to be somewhere between $120 billion and $500 billion.

#9 20 percent of the residents of Los Angeles County are now receiving public aid.

#10 Budget cuts are making life very difficult in many California cities.  For example, Oakland, California Police Chief Anthony Batts says that due to severe budget cuts there are a number of crimes that his department will simply not be able to respond to any longer.  The crimes that the Oakland police will no longer be responding to include grand theft, burglary, car wrecks, identity theft and vandalism. 

Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”

#11 According to one survey, approximately 1 in 4 Californians under the age of 65 had absolutely no health insurance last year.

#12 California’s poverty rate soared to 15.3 percent in 2009, which was the highest in 11 years.

#13 California’s overstretched health care system is also on the verge of collapse.  Dozens of California hospitals and emergency rooms have shut down over the last decade because they could not afford to stay open after being endlessly swamped by illegal immigrants and poor Californians who were simply not able to pay for the services they were receiving.  As a result, the remainder of the health care system in the state of California is now beyond overloaded.  This had led to brutally long waits, diverted ambulances and even unnecessary patient deaths.

#14 California home builders began construction on 1,811 homes during the month of August, which was down 77% from August 2006.

#15 Earlier this year, it was reported that in the area around Sacramento, California there was one closed business for every six that were still open.

#16 The “lawsuit climate” in California is ranked number 46 out of all 50 states. 

#17 Residents of California pay some of the highest electricity prices in the entire nation.

#18 Over 20 percent of California homeowners are now underwater on their mortgages.

#19 Large tent cities have been springing up all over the state of California.  Just check out the following shocking video news report….

http://www.youtube.com/watch?v=cRLupIRhrmg

So why doesn’t the state government of California just fix many of these problems?  Well, the truth is that it simply cannot.  The state government is flat broke.  Earlier this year, Bob Herbert of the New York Times described California’s massive budget problems this way….

California has cut billions of dollars from its education system, including its renowned network of public colleges and universities. Many thousands of teachers have been let go. Budget officials travel the state with a glazed look in their eyes, having tried everything they can think of to balance the state budget. And still the deficits persist.

So is there any hope that all this can be turned around?

Is there any hope that the economy of California will recover?

Or will California continue to experience a rapid decline?

Please feel free to leave a comment with your opinion….

85 comments to California Is Broke – 19 Reasons Why It May Be Time For Everyone To Leave The State Of California For Good

 

     

 

     

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HOMEGROWN REVOLUTION – Radical Change Taking Root

Do you want to talk about “Change” or “Stepping Backwords”, How’s this for “CHANGE”

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Health Care Reform: 13 Tax Changes on the Way – From the Kiplinger Newsletter.

Health Care Reform: 13 Tax Changes on the Way

For the link to the full article “Health Care Reform: 13 Tax changes on the Way”, click here.

The above web site is the “Kiplinger Letter” which is referenced below.

This came from the Senior Tax Editor for Kiplinger Letters

Subject: This Will be Difficult For All of Us

In just three months, on January 1, 2011, the largest tax hikes in the history of  America  will take effect.
They will hit families and small businesses in three great waves.
On January 1, 2011, here’s what happens… (read it to the end, so you see all three waves)…
    
First Wave:

Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families.
These will all expire on January 1, 2011.

Personal income tax rates will rise. 
The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed).  
The lowest rate will rise from 10 to 15 percent.  
All the rates in between will also rise.  

Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.  
The full list of marginal rate hikes is below:

The 10% bracket rises to an expanded 15%
The 25% bracket rises to 28%
The 28% bracket rises to 31%
The 33% bracket rises to 36%
The 35% bracket rises to 39.6%
 
Higher taxes on marriage and family.  
The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income.  
The child tax credit will be cut in half from $1000 to $500 per child.  
The standard deduction will no longer be doubled for married couples relative to the single level.  
The dependent care and adoption tax credits will be cut.

The return of the Death Tax.
This year only, there is no death tax.  (It’s a quirk!) For those dying on or after January 1, 2011, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes, a business, a retirement account, could easily pass along a death tax bill to their loved ones.  Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money.  Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax.  Think about your own family’s assets.  Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million.  Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash!  That’s 55% of the value of the assets over $1 million!  Do you have that kind of cash sitting around waiting to pay the estate tax?

Higher tax rates on savers and investors.
The capital gains tax will rise from 15 percent this year to 20 percent in 2011.  
The dividends tax will rise from 15 percent this year to 39.6 percent in 2011.  
These rates will rise another 3.8 percent in 2013.

Second Wave:

Obamacare
There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011.  They include:
The “Medicine Cabinet Tax”
Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax”
This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous:  parents of special needs children.  
There are thousands of families with special needs children in the  United States, and many of them use FSAs to pay for special needs education.
Tuition rates at one leading school that teaches special needs children in  Washington,  DC  (National Child Research Center) can easily exceed $14,000 per year.
Under tax rules, FSA dollars can not be used to pay for this type of special needs education.

The HSA (Health Savings Account) Withdrawal Tax Hike.
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Third Wave:

The Alternative Minimum Tax (AMT) and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise-the AMT won’t be held harmless, and many tax relief provisions will have expired.
The major items include:
The AMT will ensnare over 28 million families, up from 4 million last year.
According to the left-leaning  Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families-rising from 4 million last year to 28.5 million.  These families will have to calculate their tax burdens twice, and pay taxes at the higher level.  The AMT was created in 1969 to ensnare a handful of taxpayers.
Small business expensing will be slashed and 50% expensing will disappear.
Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000.  
This will be cut all the way down to $25,000.  Larger businesses can currently expense half of their purchases of equipment.  
In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses.
There are literally scores of tax hikes on business that will take place.  The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced.
The deduction for tuition and fees will not be available. 
Tax credits for education will be limited.  
Teachers will no longer be able to deduct classroom expenses. 
Coverdell Education Savings Accounts will be cut. 
Employer-provided educational assistance is curtailed.  
The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed.
Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.  
This contribution also counts toward an annual “required minimum distribution.”  This ability will no longer be there.

PDF  Version  Read more: <http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>;; ;http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
And worse yet?
Now, your insurance will be INCOME on your W2′s!

One of the surprises we’ll find come next year, is what follows – - a little “surprise” that 99% of us had no idea was included in the “new and improved” health care legislation . . . the dupes, er, dopes, who backed this administration will be astonished!

Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company.  It does not matter if that’s a private concern or governmental body of some sort.  

If you’re retired?  So what… your gross will go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that you have never seen.  Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt.  That’s what you’ll pay next year.  

For many, it also puts you into a new higher bracket so it’s even worse.

This is how the government is going to buy insurance for the 15% that don’t have insurance and it’s only part of the tax increases.

Not believing this???  Here is a research of the summaries…..

On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001, as modified by sec. 10901) Sec.9002  “requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income.”

- Joan Pryde is the senior tax editor for the Kiplinger letters.
- Go to Kiplingers and read about 13 tax changes that could affect you.  Number 3 is what is above.

Excerpted from Health Care Reform: 13 Tax Changes on the Way – Kiplinger
http://www.kiplinger.com/businessresource/forecast/archive/health-care-reform-tax-hikes-on-the-way.html

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Are We Headed for Economic Armageddon? Various related videos – [Dr. Gary North]

From: americanvisiontv | September 29, 2010  | 1,490 views

In today’s episode, host Gary DeMar is joined by Dr. Gary North, noted speaker and author of the most extensive commentary on the Bible as it relates to economics. They will be taking a look at Wayne Grudem’s book “Politics According to the Bible”, particularly the section addressing economics.

The Slippery Slope of Wealth Redistribution. (Part 2 of 4)
From: americanvisiontv | October 01, 2010
In his book “Politics According to the Bible”, Wayne Grudem includes a hefty chapter dealing with economics and this is good. There needs to be a greater emphasis on and involvement in politics and economics by Christians. However, it is crucial that we truly use the Bible as our guide. Today, Gary DeMar and Dr. Gary North take a closer look at some of the conclusions in Dr. Grudem’s book.

How Much Socialism is Biblical? (Part 3 of 4)
From: americanvisiontv | October 12, 2010
Romans 13 talks about rulers or governments “praising the good”, but what does this entail? Is this a biblical support for government welfare? If it is, where do we draw the line? How much socialism is biblical?
Social Security: An “Innocent” Baby That Grew Up To Be a Monster? (Part 4 of 4)
From: americanvisiontv | October 15, 2010  | 722 views
As we wrap up this series dealing with Wayne Grudem’s book, “Politics According to the Bible”, we concentrate on what he has to say regarding social security. Dr. Grudem puts forth the idea in his book, that social security was worthy and even biblical as it was first established in 1935, and that it became corrupt over time. Gary DeMar and Dr. Gary North examine this assumption, holding it up to scrutiny in the light of God’s Word.
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RSA Animate – Smile or Die – Barbara Ehrenreich

Acclaimed journalist, author and political activist Barbara Ehrenreich explores the darker side of positive thinking.

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Drive: The surprising truth about what motivates us.

This lively RSA Animate, adapted from Dan Pink’s talk at the RSA, illustrates the hidden truths behind what really motivates us at home and in the workplace.
www.theRSA.org

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