Just the Facts, Ma’am – Fiscal Cliff Edition: This was the famous, at least to those of us who were alive then, admonition offered by the fictional LA detective, Sergeant Joe Friday, to witnesses who would engage in too much speculation about a crime. Well, I generally give you a lot of my opinion. Every once in a while, though, I give you just the unvarnished facts so that you can draw your own conclusions.

You have probably heard the term “Fiscal Cliff” enough times to make you sick. But, do you really know everything it entails? Below, you will find a comprehensive list of every law that will expire at the end of this year, as well as the result of our returning to whatever the law was before. The accumulation of all of these things has been dubbed collectively by the media as the “Fiscal Cliff”:

• Unemployment compensation will revert from a 73 week maximum to a 26 week maximum. This takes it back to the duration that existed in 2008 and prior. This will reduce spending by approximately $30 billion over 10 years.

• For the past 2 years, there has been a “payroll tax holiday”. For this… Read More

Congressman Tom McClintock

House Chamber, Washington, D.C. December 12, 2012

Mr. Speaker:

To understand the federal budget mess and the so-called fiscal cliff, it’s important to remember three numbers: 39, 37 and 64.

Thirty nine percent is the combined increase of inflation and population over the last ten years. Thirty nine percent.

Thirty seven percent is the increase in revenues during the same period. That’s despite the recession and tax cuts. Not quite keeping place, but pretty close.

Sixty four is what’s killing us. Sixty four percent is the increase in federal spending in that period. That’s nearly twice the rate of inflation and population over the last ten years.

The spending side of the fiscal cliff is the so-called sequester: automatic cuts in federal spending. To hear some tell it, these cuts will mean the end of western civilization.

Hardly. After a 64 percent increase in expenditures this decade, the sequester doesn’t actually cut spending at all: it… Read More

The latest barrage of “news” reports that California is enjoying an economic recovery is evidence that this is most likely being driven by Gov. Jerry Brown’s office.

Ya sure, you betcha, we’re fine.

Given that the California Department of Finance works only for the governor, the pressure is on to provide numbers and information which presents a picture favorable to the governor.

This was never more clear than when a report showing the unemployment rate in the U.S. fell below 8 percent in order to boost to President Obama’s re-election campaign right after his first dismal debate performance with Republican challenger Mitt Romney.

It was the numbers from California that gave the boost needed.

Conveniently, the Labor Department reported in Sept. that the nation’s jobless rate improved to 7.8 percent. The unemployment rate had not been that low since Obama took office in January 2009.

The latest monthly jobs report was released by the Bureau of Labor Statistics the first week of October. The unemployment rate miraculously decreased to 7.8 percent in September, the BLS reported.

According to The Associated Press, “the… Read More

This entry may be a little late to the presses, but I figure better a little late than too late. Anyway, I’m proud to spread the word that my friend Rohit Joy has officially announced his candidacy for California Republican Party Bay Area Vice Chairman. These last few weeks he has been circling the wagons and garnering support from activists, party officials and elected officials. The position of Regional Vice Chair of the CA GOP can sometimes be ceremonial and has a vague job description beyond official party guidelines of standard board positions. Rohit won’t be taking the position lightly, though. As part of his announcement, he’s outlined a plan to broaden the party’s appeal among the “Millennial Generation”—something the CRPdesperatelyneeds. As a member of the Millennial Generation who will be saddled with debt by my government I’m glad Rohit has recognized that others in the Millennial Generation must be approached and informed of the fiscal carnage we will endure unless we elect leaders to address it. The GOP needs to be at the forefront of this reality check if we plan to ever turn young voters toward our… Read More

What is a “death spiral state”? If you live in the largest state on the West Coast, I think you know the answer. The Forbes article below uses objective criteria to establish rankings — with the idea of suggesting that folks should not buy homes or municipal bonds in the declining states. The comparison uses two criteria. One is the standard mish-mash of economic factors we have all come to expect — factors covered in my dreary “Breaking Bad” fact sheet comparing CA with the other states.“[It]is a scorecard of state credit-worthiness done by Conning & Co., a money manager known for its measures of risk in insurance company portfolios. Conning’s analysisfocuses more on dollars than body counts.Its formula downgrades states for large debts, an uncompetitive business climate, weak home prices and bad trends in employment. But the other criterion is more interesting. It’s a ratio of takers to payers.It … Read More

FlashReport readers share my world of politics and policies and we come to rely on those who are always there to speak out, to volunteer, and to be supportive. These challenges bond like minded people together tighter than blood. That is the way I feel about my friend, colleague, and staffer Barbara Alby. We lost Barbara on Sunday suddenly with no notice. Because she finished strong and was active up to her untimely death many of us talked to her recently and have very fresh fond memories.

I knew Barbara as a fiery conservative legislator who spoke with a refreshing directness on social issues. But also a legislator who had great legislative success with Megan’s Law adopted by liberals and conservatives alike. I knew Barbara as my Chief of Staff at the Board of Equalization whose sympathy for taxpayers was obvious to all. She also had that great (women’s) intuition to know the difference between taxpayers under duress and those few cases of con artists who came before the Board. I knew Barbara as my wife Sherry’s business partner in travel agency and event planning and saw her great business negotiating skills. Sherry and I had the pleasure of… Read More

I was stunned when I got a text message from a friend earlier today, informing me that Barbara Alby had passed away at the relatively young age of 66. Most FlashReport readers will not know Barbara, but many of you did. I first met Barbara back in 1988. There was a group of us that decided to focus our GOP efforts back in that time, as Reagan left office, on building up the California Republican Assembly, the state’s oldest Republican grassroots organization. Barbara was fresh off of the Pat Robertson bandwagon, and I had been a supporter of Jack Kemp, but first through the CRA, and through the California conservative movement, we began a friendship which has been one of the most impactful on my life.

On one level, many saw Barbara as a very successful politico. After all, she served for many years as an influential Vice President of the California Republican Assembly. She went on to serve for six years in the California State Assembly, holding bold colors when many in the building, in our own party, would have preferred soft pastels. And Barbara served for twelve years as a member of the Republican National Committee representing our state. Barbara also… Read More

I hate being a Cassandra, always reporting bad news. Well, I’m SUPPOSED to hate being a Cassandra. I’m a little weird about it, actually.

But no matter. Today I have a bit of GOOD news for California taxpayers. In a significant 3-0 ruling by a California appeals court, a wrongly structured Alameda school district parcel tax was struck down, and the money collected has to be refunded to taxpayers.

The state law concerning parcel taxes is clear. The parcel tax has to be a uniform dollar amount, regardless of the value of the property. I suppose the theory is that such a tax benefits each taxpayer equally, so the tax has to reflect that. Exceptions are made for seniors and the disabled, but NOT for commercial property.

The tax grabbers know full well that ‘soak-the-rich” measures resonate with voters. And, after all, there are more voters than business owners. So some agencies and jurisdictions have been trying to pass parcel taxes that allow commercial taxes to be taxed on some sliding scale — bigger payments for bigger parcels. Such was the case with this tax.

“No can do” says the court.… Read More