California Socialists in Sacramento Double-Down on Pension Ponzi
San Diego Rifle and REvolver Association
CA Senate Bill 1234 creat
es a new California ‘entitlement’ by forcing all CA businesses with 5 or more employees that do not have a government-defined employee-pension mechanism to ‘join’ and ‘contribute’ to this new ‘safety net’. Withholding is approximately 3 percent of an employees pay. Employers may be requird to contribute more in the future. Got 100 or more employees? You’ve got 6 months to join or face fines.
The design of the Golden State Retirement Savings Trust Act seeks to expand the already failing state-pension program by creating the new system, which in today’s bill is segregated, but tomorrow will be grafted-in [yes, there will be graft] to the dangerously failing state pension program, thereby expanding the Ponzi-baseline to ensure that when the house of bricks falls on its foundations of straw, total collapse is assured.
The bill sits on The Moon Beam’s desk until September 30, 2012, where it either becomes law or not. I doubt he will veto it. It has all the things Leftists love: capital seizure of private monies, demonization of small businesses, tentacles into private equity, all the safety-net BS, makes the pension-Union people happy, avoids all cuts to existing programs, creates a new elite-panel of oligarchs not accountable to voters, allows illegal aliens to gain another foothold into state-sanctioned benefits, sets up a system where campaign contributors can influence the 7-member panel to grant waivers and special favors, and more.
The only bad thing about the bill is that it can’t prevent capital flight and capital controls due to the fact that California is still a state in the Union and businesses can stil flee to other states.
When will Californians wise up to the ever-growing fascist state government? Not anytime soon. The checks are still flowing, the Libs are still in charge, and the sheep are still grazing in the pastureland, too stupid to see the slaughter house under construction.
On the national scale, here is an intro to capital flight and capital controls:
From ZeroHedge.com:
Two signs that fear and instability have reached critical mass are capital flight and capital controls. Capital flight is people and enterprises moving their capital (cash and liquid assets) to an overseas "safe haven" to avoid devaluation of the currency or confiscation of their capital/assets. (Devaluation can be seen as one method of confiscation; high taxes are another.) Capital controls are the Central State's way of stemming the flood of cash leaving the country. Why do they want to stop money leaving? If we think of each Central State as a neofeudal fiefdom, we understand the motivation: citizens are in effect serfs who serve the State and its financial nobility. If the serfs move their capital out of the fiefdom, it is no longer available as collateral for the banks and a source of revenue for the State. Once capital has drained away, borrowing and lending shrink, cutting off the revenue source of the banks (financial nobility). Since financial activity also declines as cash is withdrawn from the system, the State's "skim"--transaction fees, sales taxes, VAT taxes, income taxes, wealth taxes, etc.--also declines. Both the State and its financial nobility are at increasing risk of decline and eventual implosion as capital flees the fiefdom. The Central State imposes capital controls as a means of Elite self-preservation.