CAFR: CA keeps $600 billion in taxpayer assets, then taxes $19 billion more for ‘pension fund’

California’s 2011 Comprehensive Annual Financial Report (CAFR) shows a tax surplus of $600 billion dollars in cash and investments. Pages 234-235 show that Californians (“Employer”) paid $12 billion in taxes to retirement funds, and total “Distributions to beneficiaries” plus costs is $27 billion.

However, I wrote:

page 83 lists $460 billion of investments claimed to help fund state pensions. Pages 234-235 show these investments had $10 billion income, and cost $3 billion in expense (Wall Street investors). Page 107 shows $6 billion interest cost for the state’s $164 billion debt.

Therefore state investment income minus debt interest cost equals ~$1 billion. This means the state retains $600 billion in taxpayer assets for $1 billion in income.

So this means that the state’s $50,000/household retention of taxpayer assets ($600 billion and 12 million households) that produce net income of just $1 billion is 1/27th (4%) of the funding for pensions. Taxpayers fund 19/27ths (70%) from their pockets with additional taxes, and “Plan members” fund $7 billion from paycheck deductions.

This is more data that refute claims that this “overtax” of $600 billion is necessary to fund pensions when it contributes a net of 1/27th of pension payments, and taxpayers have to pay 19/20ths (95%) of the public funding out of their own pockets with additional taxes.

In fact, it makes the claim officials “need” to retain $600 billion of taxpayer assets a lie.

If that lie is stated by a government official, it becomes criminal fraud.

Want answers? I explain and document what I see here.

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  • Tom

    Thanks for trying (and I mean this most sincerely) but today on my daily walk I observed the usual slice of mainstream America – CA natives and Midwestern tourists alike, and witnessed the following:

    Fat, gluttonous families – Mom, dad and kids all 30-100lbs over weight. Stuffing their faces with crap. Oblivious to all, even their own bodies – and pleased as pigs with their condition.

    Mom, Dad and kids – all tatted up. Apparently family night consists of trips to the local tattoo artist.

    Complete self absorption – a bizarre inability to function in society even on the most basic terms of navigating a sidewalk. That vacant stare, punctuated with a brief shock to be met by another human sharing the sidewalk.

    Pit Bulls – everywhere.

    Do you really think this is worth saving? I don’t.

    • Carl Herman

      Give up then, Tom. Surrender. See how that goes for you, and let us know.

      I’m curious, what will you do with your surrendered life?

      Btw, is that all you see when you observe human beings?

      You might be missing something.