Global Economy Bursting?

[Pamela Crowley (Florida)]

I still love this thread. Is it possible for the USA to survive these next 4 years? I'm starting to truly doubt it.

 

[Randolph Kinney]

I still love this thread. Is it possible for the USA to survive these next 4 years? I'm starting to truly doubt it.

Walter Williams, the George Mason economics professor and syndicated columnist, referring to the ability of government to alter the rules of the free market, put the underlying economic principal about as clearly as possible: "If you want more of something, subsidize it; if you want less of something, tax it."

So the more we tax prosperity, the less of it we will have.

Actually, the subsidy works up to a point. That subsidy is paid from taxes. People who are taxed, leave; those that receive the subsidy stay. And then you run into the Detroit syndrome.

 

[Riick]

Unintended Consequences
......,,,,,,,,,,,,........... ?

.
​

 

[Couch Potato]

Stockton, California Went Broke As Quarter Of Workers Earned More Than $100,000

http://www.huffingtonpost.com/2013/02/25/stockton-california-100000-workers_n_2761003.html

In the same year that Stockton, Calif., became the largest city in U.S. history to file for bankruptcy, roughly one-fourth of the city’s employees earned more than $100,000 annually, according to local Stockton news outlet The Record.

To be precise, 23 percent of all full-time workers took home over $100,000 in 2012, as the city spent $107 million on total payroll, according to the report. That’s reportedly down from a couple years earlier, when about 30 percent of employees brought home more than $100,000 and the city spent around 15 percent more on employees over all.

When Stockton filed for bankruptcy last June, it announced plans to cut roughly $11 million in compensation and benefits in order to make headway into the city’s $26 million budget deficit. Yet the city’s average wage was not among the highest in the state in 2011, nor did the city boast a particularly high ratio of city employees to residents, according to the California State Controller’s Office.

When asked about the city’s $100,000 workers, City Manager Bob Deis defended the city’s payscale. "We're not hiring people that work at McDonald's," Deis said, according to The Record. "We're hiring a lot of people with degrees." A 2010 paper published by the Economic Policy Institute backed up the general claim that the average city- and state-level worker is not overcompensated: On average, full-time state and local employees are undercompensated by 3.7%, in comparison to otherwise similar private-sector workers.

Not a big deal to make $100,000 when you consider that is equivalent to earning under $36,000 when Reagan was elected.

Yet the city’s average wage was not among the highest in the state in 2011, nor did the city boast a particularly high ratio of city employees to residents, according to the California State Controller’s Office.

Stockton had 1,279 full-time workers and spent $107,000,000 on total payroll. They have numerous open positions which they cannot fill because they do not pay enough to compete. As the man indicated, they are not hiring people to flip burgers.

 

[Randolph Kinney]

California Girds for Electricity Woes

Increased Reliance on Wind, Solar Power Means Power Production Fluctuates

http://online.wsj.com/article/SB10001424127887323699704578328581251122150.html?mod=googlenews_wsj

California is weighing how to avoid a looming electricity crisis that could be brought on by its growing reliance on wind and solar power.

Regulators and energy companies met Tuesday, hoping to hash out a solution to the peculiar stresses placed on the state's network by sharp increases in wind and solar energy. Power production from renewable sources fluctuates wildly, depending on wind speeds and weather.

California has encouraged growth in solar and wind power to help reduce greenhouse-gas emissions. At the same time, the state is running low on conventional plants, such as those fueled by natural gas, that can adjust their output to keep the electric system stable. The amount of electricity being put on the grid must precisely match the amount being consumed or voltages sag, which could result in rolling blackouts.

At Tuesday's meeting, experts cautioned that the state could begin seeing problems with reliability as soon as 2015.

California isn't the only state having trouble coping with a growing share of renewables. Texas also needs more resources, such as gas-fired power plants, that can adjust output in response to unpredictable production from wind farms.

 

[Terrel L. Shields]

Power production from renewable sources fluctuates wildly, depending on wind speeds and weather.

You mean the bat-flailing, bird-slicing, eco-crucifix?

 

[Restrain]

Texas has already had brown-outs due to an over-reliance on wind power. In summer, the High builds in, stopping the winds. 25% of Texas energy is wind powered.

 

[Randolph Kinney]

Nothing like paying for generation capacity, twice: Adding green power then again adding carbon power to make up for the unreliability of green power. Plus the added pleasure of brown outs and black outs.

Now the kicker is the cost to the consumer and businesses; higher rates. :new_all_coholic:

And, someone can brag about being green while the CO2 levels stay the same.

 

[Randolph Kinney]

Nevada Corporation Solely Owned By California Resident Dodges California Taxes

California shakedown cost state millions

http://www.forbes.com/sites/jayadki...-california-resident-dodges-california-taxes/

The California Franchise Tax Board (FTB) held that a Nevada Company was commercially domiciled in California because it was owned by the California resident. The FTB assessed total California taxes, interest and penalties in the amount over $2.27 million for the years 1997 and 1998.

The Company paid the FTB those taxes, and then sued for a refund. The evidence at trial was largely undisputed by both parties, and proved:

• The Company maintained its corporate office in Nevada.
• The Company maintained its bank accounts at Bank of America in Las Vegas.
• All meetings of its board of directors were held in Las Vegas.
• The Company’s books and records were maintained in Nevada.
• The Company’s had only one corporate officer, who resided in Nevada.
• All the Company’s business affairs were conducted in Nevada.

The Company’s only contact with California was that the Company’s sole owner and a member of the board of directors was a California resident. However, there was no evidence that the California owner in any way managed the operations of the Company; that was done by the Nevada officer.

After 10 years of litigation, the Company won and the FTB was ordered to refund the $2.27 million, plus interest, costs and attorney fees.

Daniel V, Inc. v. California Franchise Tax Board, Cal.Sup.Ct.L.A., No. BC457301 (Feb. 6, 2013).

 

[Couch Potato]

Nevada Corporation Solely Owned By California Resident Dodges California Taxes

California shakedown cost state millions

http://www.forbes.com/sites/jayadki...-california-resident-dodges-california-taxes/

The California Franchise Tax Board (FTB) held that a Nevada Company was commercially domiciled in California because it was owned by the California resident. The FTB assessed total California taxes, interest and penalties in the amount over $2.27 million for the years 1997 and 1998.

The Company paid the FTB those taxes, and then sued for a refund. The evidence at trial was largely undisputed by both parties, and proved:

• The Company maintained its corporate office in Nevada.
• The Company maintained its bank accounts at Bank of America in Las Vegas.
• All meetings of its board of directors were held in Las Vegas.
• The Company’s books and records were maintained in Nevada.
• The Company’s had only one corporate officer, who resided in Nevada.
• All the Company’s business affairs were conducted in Nevada.

The Company’s only contact with California was that the Company’s sole owner and a member of the board of directors was a California resident. However, there was no evidence that the California owner in any way managed the operations of the Company; that was done by the Nevada officer.

After 10 years of litigation, the Company won and the FTB was ordered to refund the $2.27 million, plus interest, costs and attorney fees.

Daniel V, Inc. v. California Franchise Tax Board, Cal.Sup.Ct.L.A., No. BC457301 (Feb. 6, 2013).

I bet that interest rate is better than anything they could get elsewhere! woohoo