Welcome to the Moonbeam Ball!

By Rich Kozlovich

On February 1, 2013 Wynton Hall published an article, “California Tax Hike Sparks Millionaire Migration” pointing out the consequences of attempting to get California’s budgetary nightmares under control via tax increases.  He went on to say that;

“Democratic Governor Jerry Brown pushed for a tax hike plan last November to increase the state’s overall tax rate on millionaires to the highest in the nation at 13.3%.  But now, experts say Brown’s actions may be sparking a tax migration for the high income earners whom the state relies on to pay its bills.”

In the article he quotes “Ed Botowsky of Chapwood Investments who manages the finances of several professional athletes and high income Californians” saying “some of his clients have already made the decision to flee the state to avoid the tax crunch. “You’d be a fool not to leave California.” Is it possible that this will be that last year the San Francisco 49er's go to the playoffs? 

He goes on to point out that;

“Seven states including Florida, Texas, and Nevada do not have a state income tax.  That can mean big savings for millionaires willing to make the move.  Tiger Woods’s move from California to Florida will save him an estimated $7.5 million in taxes this year alone.  His golf rival, Phil Mickelson, who recently expressed concern over California’s tax squeeze, could save $8 million this year by following Tiger's lead.”

So Jerry “Moonbeam” Brown’s answer was high taxes - a lot higher - rather than attacking the problem of overspending.  His solution was support of Proposition 30, also supported by “several public sector unions”, which “would increase the state’s sales tax, from 7.25 percent to 7.5 percent, and the state income tax, by a percentage point or more, for all incomes above $250,000. For the public employee unions, the benefit of this measure is clear: More money to pay their members. For Governor Brown, it gains him the unions’ support.”  So then it turns out that spending wasn’t the problem after all.  The problem was that the tax rates were too low.  After all, it you make no real attempt to curtail spending then spending most not be the problem!  Right? 

Does everyone know the two trails in the jungle story?  It is an illustration to explain why people keep doing the same stupid things over and over again.  For those who haven’t heard it this is the way it goes. 

There are two trails in the jungle leading to some destination - in this case the Moonbeam Ball.  One road is rarely taken because it is a rough, uneven, overgrown trail requiring a great deal of work, time and effort to cut the way through.  However, it is absolutely safe.  Everyone who has ever gone this way has successfully arrived unharmed.

The other road is smooth and level with no overgrowth allowing for rapid travel and little effort.  The only problem is that at the end of the trail there is a pride of lions that jumps out and kills everyone who goes down this trail.  Now everyone knows about this pride of lions, and everyone knows that no one survives, yet they still take this easy trail.   Why?  Because cutting a new trail through the jungle is really hard work and somehow they think that they will be spared an attack by the lions, unlike everyone else. 

That is an illustration of what goes on in the real world.   That is the way the human mind works.  In spite of the fact that some people's lives are a mess due to a lifetime of bad decisions these people will continue to travel the well worn paths in their minds rather than take on the task of seeing, thinking and acting differently.  Because that is a lot of work and they somehow believe doing what has been unsuccessful over and over again will turn out good next the time.  Einstein's definition of insanity!

However in the Moonbeam’s case there really is a level of justice here.  The first time Moonbeam served as governor of California he set this financial mess into motion by authorizing public employee unions, which has placed the state and all the municipalities in a financially unsustainable position.  And now he has come face to face with the reality he created and bankruptcy is in the offing.  Do you hear that great big sucking sound?  That's California going down the drain. 

But I say that you Californians should hang tough and defeat any effort to curtail union activity and pay increases.  Absolutely do not stand for any cuts in spending.   This is what you have preached to the nation for decades and this is what you have wanted all of this for decades; so I congratulate you for getting what you deserve!    You will be an example to the nation – no - not just the nation - to the world! Don’t worry about the millionaires leaving, don’t worry about the fact that you have run out of other people’s money – always the scourge of socialist societies – you just keep the faith!  The world is watching!  This way for years to come anyone in a leadership role who wishes to be successful will be able to look at California and just do the opposite

I’m afraid that I know what the next step will be though.  Moonbeam and all the leftists in the nation will start demanding that the rest of the country bail them out, but without strings attached, in order that they can continue down to the end of the road where the lions will eat them alive, and you will be invited to come with them. 

Practitioners of leftism, in all its permutations and transfigurations, including the green movement, really must be insane!