California has $4.5 billion tax surplus! (real estate, 2014, credit)

[nullgeo]

Originally Posted by Fargobound

This is kind of like bragging you've got a $1.50 in your pocket, because Montel Williams told you to go to Money Mutual.

Really? How so pray tell?

You do understand the difference between personal finance and business and government finance, right?
You know, like how businesses and governments must invest in the future and infrastructure to grow revenue potential and meet responsibilities and mandates -- and this is done by borrowing working capital ... compared to families and individuals who are best served by limiting debt?

Or wait ... lemme guess ... you have an advanced degree in economics from TPU? (Tea Party University ... a.k.a. Toilet Paper University)

[Fontucky]

Originally Posted by Fargobound

This is kind of like bragging you've got a $1.50 in your pocket, because Montel Williams told you to go to Money Mutual.

Bitter, party of one, your snowmobile is ready.

[Fargobound]

Originally Posted by nullgeo

Really? How so pray tell?

One of the biggest problems California faces is taking on debt for sunk costs such as feeding the ghetto plebs at the bottom and the pigs in government.

There's also that little multi billion dollar money train that the farm laborers can can ride between cities.

[nullgeo]

Originally Posted by Fargobound

One of the biggest problems California faces is taking on debt for sunk costs such as feeding the ghetto plebs at the bottom and the pigs in government.

There's also that little multi billion dollar money train that the farm laborers can can ride between cities.

Do tell ...

... offset by the nation's top state economy (9th in the world -- we just can't say that enough around here to get it through some people's skulls) and a greater range of resources than any other state to draw on for the future.

And, regardless, you still haven't explained how your comparison of the state relates to a broke individual and Montel Williams' advice. Because there isn't any comparison between personal and state finances. That's why.

Back to your snowmobile and howling prairie winds now ...

[ZhugeLiang]

It's pretty easy to distinguish who actually read the entire article and who didn't in this thread.

From the article:

It's possible that Californians, fearing federal income tax hikes stemming from the budget standoff in Washington, cashed out investments late last year. Jerry Nickelsburg, senior economist at the UCLA Anderson School of Management, said federal statistics suggest many people did so. "If you had a choice of taking income in January or December, and you will pay less taxes in December, why wouldn't you do that?" he said.
That could account for some of the current surplus — and state income could fail to keep pace in the next fiscal year, which begins July 1.
Chris Thornberg, a founding partner at Beacon Economics in Los Angeles, said he is concerned that lawmakers will use the spike in revenue as an excuse to abandon efforts to rein in public-worker benefits or stabilize the state's tax system. California's reliance on income taxes makes its finances somewhat unpredictable and has led to cycles of boom-and-bust budgeting.





As this portion implies, we're looking at an anomaly here. We do rely far too much on income taxes. If we want to bring back the good times, some institutional changes are in order. Heck, I would actually support a total repeal of Prop. 13, on the condition that we become a no income tax state. Our property taxes would provide more stability anyway.

"We're not framing the debate around what to cut, we're making choices about what kind of investments we want to make."

And that's why this moment will be so fleeting while the Assembly is populated with ideological dunces like Bob Blumenfield. Not that a tax revenue surplus is really anything to cheer about in the first place. All it means is that we're overtaxing people. Except that we don't actually have a surplus. You can't have hundreds of billions in unfunded liabilities and then cheer the news that you have a "surplus."

Like I said in a similar thread a couple of months ago, this is almost the equivalent of someone who is $100,000 in debt who gets excited over a $100 bonus at work.

[nullgeo]

Originally Posted by ZhugeLiang

Not that a tax revenue surplus is really anything to cheer about in the first place.

It isn't?

Originally Posted by ZhugeLiang

All it means is that we're overtaxing people.

No, it doesn't.

Originally Posted by ZhugeLiang

Except that we don't actually have a surplus.

Actually, yes, we do.

Originally Posted by ZhugeLiang

You can't have hundreds of billions in unfunded liabilities and then cheer the news that you have a "surplus."

Yes, you can.

Originally Posted by ZhugeLiang

Like I said in a similar thread a couple of months ago, this is almost the equivalent of someone who is $100,000 in debt who gets excited over a $100 bonus at work.

No, it isn't.

[sithlord72]

Don't worry , the democrats will blow it like they always do, then cry poverty and run to DC so their boy Barry can bail them out too..

[18Montclair]

Originally Posted by nullgeo

It isn't?
No, it doesn't.
Actually, yes, we do.
Yes, you can.

No, it isn't.

Well said.

[ZhugeLiang]

Originally Posted by nullgeo

It isn't?
No, it doesn't.
Actually, yes, we do.
Yes, you can.

No, it isn't.

Behold, Nullgeo's debate skills on full display folks. Thanks for the reminder as to why no one here takes you seriously.

Originally Posted by 18Montclair

Well said.

Yeah, it's infinitely amusing to see people cling to their ideology in the face of facts. By the way Monty, try reading your own sources next time before you post a link.

[Fargobound]

Originally Posted by nullgeo

Do tell ...

... offset by the nation's top state economy (9th in the world -- we just can't say that enough around here to get it through some people's skulls) and a greater range of resources than any other state to draw on for the future.

.

I'll just assume you're talking about the brain trust in Sacramento or taxpayers that vote for more taxes.

Oil, gas, forests etc are all off limits in CA and your snowpack, well it's pretty pathetic this year.

Credit ratings are a resource, well CA is damn near dead last in that area.