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.