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Politick_Rick @Politick_Rick
, 15 tweets, 4 min read Read on Twitter
1/ @TuckerCarlson I've sent you enough tweets to provide material for a full week of shows. Important stories: 1) the disappearing middle class 2) the California public debt, but by far and away the most important story is 3) CalPERS Is Teetering On The Edge Of Collapse!
2/ At one time the U.S. had 20 workers for every retiree. Now it's down to 2.7 and declining. The insolvency of pensions all across the U.S will not improve as a result. The worst of all of them is California.
3/ A recent Stanford Study estimates the unfunded liability for California pensions is $1 Trillion which allocated is $93K per household in California.…
4/ According to Zero Hedge, a former Board Member of CalPERS said the fund is near insolvency & needs a bailout now!

Even worse, declining earnings pressured the Board into allocating 50% of investments to the stock market. The fund will never recover from a precipitous decline
5/ in stock values such as happened in 1987 or 2008.

If anything else goes wrong, it will push the fund over the edge!
6/ A really good article is "The Pension That Ate California." It chronicles the history of mismanagement of CalPERS, mostly at the hands of Democrats. It's a case study in why government should never be allowed to manage something this big and complex.…
7) On top of this, the Mercatus Center ranks California's financial condition 43rd. The financial watchdog group, Truth in Accounting gives California's financial condition an F, estimating that the State's debt equates to $21,600 for every taxpayer.…
8/ I'm a CPA, I assure you California's solvency position is scary at best.

The middle class is leaving California largely because they can't afford the cost of owning a home or renting. California builders are unable to produce enough housing to keep up with demand sending home
9/ purchase values and rents skyrocketing. Due to tight regulation, permit to building times can be 10 years and that can extend substantially if environmental groups decide to sue.

A continuing stream of businesses are exiting California, 9,000 between 2008 and 2015, and along
10) with them, the State's tax base.…
11) The resulting need for new revenues is so great that the State is considering a ballot initiative that will change the State's Constitution so that Proposition 13 no longer applies to commercial real estate. Surely that will speed the exodus of businesses from California as
12/ commercial rents escalate, but apparently the short-term need for cash outweighs the long-term loss, in their opinion.…
13/ But the most hilarious snafu that California politicians are wrestling with is the impact of the state and local tax limitations included in the new Tax Cuts & Jobs Act which was recently passed.

After doing their class warfare hula dance and railing against the evil 1%,
14/ it turns out they aren't so willing to see them taxed after all, at least not by the Federal Government. It turns out that in CA, the top 1% of taxpayers pay 49% of the taxes. Why is that important? Well, the loss of state and local taxes will increase the taxes of the
15/ 1%'ers so much that they may decide to move to Nevada where there is no State income tax and there goes the tax base. So, CA politicians are scrambling to come up with some jury rigged way of avoiding the state and local cap. Good luck with that!…
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