Californians’ $8 trillion in tax surpluses: What to ask your state, local representatives

Trillions in tax surpluses are revealed in government Comprehensive Annual Financial Reports (CAFRs). This applies to every state; California’s various government CAFRs reveal $8 trillion in a sampled study, and the state CAFR alone shows $600 billion (explore here to see how to document other states).

I edited this to a 250 word editorial for my local papers, that you are also welcome to use. This 10-minute radio excerpt of CAFR pioneer Walter Burien’s explanation might help to understand the extent of malfeasance for failure to clearly disclose these funds to the 99% (households earning less than $400,000/year).

The following request for answers and action from government representatives can also be adapted for your use. I will contact my two state representatives’ offices and publish their responses and actions.

Dear California representative with legal fiduciary responsibility to factually report and represent the public’s interests:

We request you affirm or refute each of the following seven points, and encourage your comments for public consideration. We promise to make your response public. We promise to judge you by your acts more than your words, and will follow-up and publicly report as we see appropriate. If you decline to respond to $8 trillion in documented tax surpluses from public financial reports, we will make that response public knowledge, and will do so repeatedly.

  • California’s Comprehensive Annual Financial Report (CAFR) shows a tax surplus of $600 billion in cash and investments. So-called “designated funds” are only designated as long as you say so, and it a lie that a $16 billion budget deficit leave “no choice” but austerity. This is similar to government claiming a checkbook shortage requires devastating cuts to our children’s education while lying in silent omission about a savings account with over 35 times the claimed shortage. 
  • “Investments” in other government debt securities is Orwellian: a net loss to taxpayers because it transfers interest from one group of taxpayers to another minus the cost of debt-creation and management. On page 83 of the 2011 CAFR, Californians own $92 billion in various government debt securities, and on page 107 we have $164 billion in our own state’s debt. Clearly, a $600 billion investment portfolio makes debt and their net taxpayer losses unnecessary, and demands independent and professional cost-benefit analyses for us to understand our options.
  • “Investments” in corporate boardroom table scraps of dividends is clearly not required to fund retirement accounts, and a tremendous subsidization of stock-exchange traded companies who receive our tax money. The current $457 billion value of this portfolio (page 83) is a tax surplus belonging to the people of California, and not the “only option” to fund retirement benefit payouts. Rather than overtaxing Californians by $600 billion, retirement could obviously be funded as “pay as you go.” Page 235 of the CAFR reports the fund grew by $68 billion since 2010, while we’re being told we must accept austerity from a $16 billion budget deficit! At the very least, this data demands professional and independent cost-benefit analyses for Californians to know the full facts and options of our investment portfolio. The harsh truth is that this comprehensive data reveals criminal economic fraud to keep Californians in the dark about their money and options.
  • If this $600 billion were returned to California’s 12 million households, each would receive $50,000. Or, if you prefer the money returned per average household income of $50,000 since this sum represents an overtax, each household could receive a proportional amount (if your household earns $150,000/year, you would receive $150,000).
  • But hold onto your accounting books: the total estimated amount of tax surplus in California is $8 trillion based on sampling of the ~14,000 various government CAFRs. If this figure is accurate, and it’s probably conservative, then each California household has been overtaxed by a present-day value of over half a million dollars ($500,000). And if we take our example of $150,000/year income, well, you’ll be happy to understand you’re owed a credit of ~$1.5 million as your share of this overtax ($1,500,000). Of course, these colossal investments should be considered by multiple and independent cost-benefit analyses to discover our options; we can’t simply all cash them in.
  • The understandable need for “rainy day” accounts would not be needed if California had a state-owned bank like North Dakota to extend at-cost credit for temporary budget deficits (North Dakota is the only state with its own bank and the only state with increasing budget surpluses). The state doesn’t need Wall Street to fund budget deficits, it can create it’s own credit. Indeed, if the state offered mortgages at 2%, the revenue from interest payments would more than cover our state tax burden. This demands independent cost-benefit analyses for public consideration.
  • At the national level, we could create debt-free money to directly pay for public goods and services. Here are three simple points to explain:
  1. The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
  2. The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt that can never be repaid. It can’t be repaid because this is what we use for money. The US national debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest payment is ~$8,000 every year).
  3. Monetary reform creates debt-free money that extinguishes the debt (details here), and allows government to become employer of last resort for infrastructure investment (hard and soft). This creates full-employment, optimal infrastructure, and falling prices because infrastructure historically creates more value to the economy than cost.

 

Want more?

The Claremont Colleges held a conference to explore monetary and credit reform in April 2012. For those who want to review the papers and filmed talks meant for the general public to understand as clearly as I hope I’ve written here, explore this link.

And for even better news, consider resource-based economics as a predictable future beyond monetary and credit reform.

Finally, you might wonder about the six US corporate media giants with literally massive investment in these government investments funds buying their stock, and their prima facie conflict of interest to report what you’re reading here. It’s not as if these are new ideas; Benjamin Franklin is among America’s brightest minds who wrote on credit and monetary reform.

We’ve wondered about corporate media’s commitment to factual reporting too, but that’s an issue for another day.

Please consider your future in forming your public response, public representative. We encourage your betting your future upon the success of 100% of Earth’s inhabitants, and not with those who would hide trillions from we the “99%” while forcing our austerity.

We are informed, and will inform the 99% of your public words and acts, representative. We are no longer willing to kiss our own assets goodbye.

We are willing to help your informed actions at your request.

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  • gozounlimited

    Thank You for your Leader-Ful action and support of the 99%…we can help ourselves and others……

    Van Jones Reveals Future of Occupy Wall St: ‘You Haven’t Seen Anything Yet’

    “You’re going to see an evolution now as you go from protests, keep the protests, but now expand into politics,” Jones said. “And if you thought there was an earthquake in 2010 when the Tea Party moved into politics, wait until this 99 percent movement moves over into politics. You haven’t seen anything yet.”

    Jones said the movement is “going to be recruiting 2,000 candidates to run for office now under this 99 percent banner“ as Occupy Wall Street enters ”phase two.”

    “Phase two, you move from anger to answers. You move from pointing out the problem to pointing out the solutions,” Jones said. “What you’re going to see now is you have the Occupy movement at the center, that’s the beating heart.”

    read more: http://www.theblaze.com/stories/van-jones-reveals-future-of-occupy-wall-street-you-havent-seen-anything-yet/

    • Carl Herman

      Thanks, gozounlimited. I worked for 18 years with leadership of both parties to end poverty. My experience that they renege on every promise, public and private, leads my conclusion to drive the timeline with specific responsible people for their actions and keep what they do public.

      That said, this is a Zen practice/hobby for me that takes my time and actually costs me money as other hobbies. That means I will enjoy my hobby and publish results with my representatives and local papers, but that’s it.

      Unless a sponsor shows up to unleash my “hobby” as a job, I can only do so much.

      • gozounlimited

        You will ‘Speak It To Be’….you are on your way to San Diego.

  • gozounlimited

    Some inspired thoughts ….

    A New Theory of Democracy
    by David Frum Feb 8, 2012

    Does modern science require us to change our understanding of how society works?

    Eric Liu and Nick Hanauer want to change the way Americans think about politics, and they want to do this with a new metaphor to describe how governance should work. This is the premise behind their new book, The Gardens of Democracy: that Americans politics can be greatly improved if we can agree that the country is like a garden.

    Real gardens need to be tended to and cared for, but they are also alive and must be left alone to actually grow. Liu and Hanauer see a similar way to govern America: tend to the big objectives (for example, creating a green energy industry) and make sure the garden has no weeds, but don’t try to micromanage each individual.

    read more: http://www.thedailybeast.com/articles/2012/02/07/gardens-of-democracy.html
    ***********
    The Gardens of Democracy – Part 1
    Published on YOUTUBE May 1, 2012 by MrNChoudhury

    28 April 2012 Bloomberg
    Nick Hanauer, Eric Liu. “Patriotism has been hijacked. The core argument is that if you take patriotism seriously, putting country first, you end up with a set of very progressive values. The core is that a million acts of selfishness don’t make a good society [Wow] In the American context is immoral and stupid. The foundation is one of values. How do things work in citizenship and the role of government? We suffer in public life right now from a misdirected imagination. We are looking at the world through the lens of a machine. Our argument is we have to shift that metaphor. It is more like a garden. An economy is not some self-correcting machine, it is a garden! It requires feeding and tending. A whole set of possibilities. A simple notion is we are all better off when we are all better off. That is not a tautology. That is a theory of action. We are not better off when a small portion are better off and things flow down from them. We are better off when more people are contributing” [Beautiful].

    see video_ http://www.youtube.com/watch?v=yXxuc7sQNfA
    ***********
    Rebuild The Dream

    Join the movement for a sustainable economy, more jobs, accountability for Wall Street, fair share taxes for corporations—and an America that delivers on its promise of opportunity for all.

    read more_ http://rebuildthedream.com/

  • plato

    The Gardens of Democracy ?

    I am always confused by those who refer this country as a democracy, when it was set up to be a constitutional republic, set up to serves We the People, who have all the power, if we so choose to exercise it.

    That is a loaded statement, but one which resonates with personal responsibility to properly captain your own ship, since the govt defines you as a vessel in commerce.

    Now, if you have eyes to see, ears to hear, and a functioning mind to discern with, you might comprehend that is not selfish, but our divine right, granted by the creator, as recognized in the Magna Carta, the State and Federal Constitutions and associated Bills of Rights, to the extent that the united states of America was once one of the greatest constitutional republics ever …

    The only way to safely regain and retain the powers vested in We the People is to learn how to operate our state and Federal Constitutions and associated Bills of Rights to thereby hold our public officials, as well as anyone / everyone ever paid with public funds in any way whatsoever, to uphold, honor, defend protect and safeguard your rights, my rights and their rights by first and foremost honoring and upholding their SCRIBED SWORN OATHS TO DO SO, WHICH IF THEY THEN VIOLATE, MEANS THEY HAVE PERJURED THEIR SWORN OATHS, WHICH BY AND THROUGH THEIR OWN ACTIONS MEANS THEY ARE OUT OF BOUNDS OF THEIR JOB DESCRIPTION AND NO LONGER FIT FOR DUTY, NEVER TO HOLD PUBLIC OFFICE OR RECEIVE PUBLIC FUNDS AS PAYMENT AGAIN IN ANY CAPACITY WHATSOEVER, PURSUANT TO SECTIONS 3 & 4 OF THE 14TH AMENDMENT:
    Section 3. No person shall be a Senator or Representative in Congress, or elector of President and Vice-President, or hold any office, civil or military, under the United States, or under any State, who, having previously taken an oath, as a member of Congress, or as an officer of the United States, or as a member of any State legislature, or as an executive or judicial officer of any State, to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same, or given aid or comfort to the enemies thereof. But Congress may by a vote of two-thirds of each House, remove such disability.
    Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

    This should be music to the ears of the 99%. THEY CAN USE THE EXISTING SUPREME LAW OF THE LAND TO HOLD OUR SERVANTS TOES TO THE FIRE OF PUBLIC OPINION AND DIRECTORSHIP.

    THIS MEANS YOU DO NOT HAVE TO WAIT FOR THE NEXT ELECTIONS IT IS IMMEDIATE, UPON ENFORCEMENT BY WE THE PEOPLE BY RECALLING THESE TURKEYS, THEY ARE SITTING DUCKS – WHERE DO YOU THINK THE TERM COMES FROM ???

    ALL WEE NEED TO DO IS EMPANEL GRAND JURIES AND INDICT THEM ALL !!!!
    THAT IS WHAT A RUNAWAY JURY IS !!!!

    AND IN THiS CONSTITUTIONAL REPUBLIC, IN ORDER TO KEEP THE POWER IN THE HANDS OF THE PEOPLE, IT IS NOT ONLY THE OBLIGATION, BUT THE DUTY, OF THE JURY TO JUDGE NOT ONLY THE CASE, BUT THE LAW ITSELF!!! AND THEY ARE EMPOWERED TO COMPLETEY DISREGARD THE lAW AND THE JUDGE IN ARRIVING AT THEIR DECISIONS … WE THE PEOPLE, THE COMMON PEOPLE IN THE JURY BOX CAN STRIKE DOWN LEGISLATION FROM THE BOX, ON THE SPOT … MORE POWERFUL THAN ANY SITTING ELECTED OFFICIAL OR PRESIDENT, AS LONG AS WE SO CHOOSE TO RE-EDUCATE OURSELVES AS TO WHO WE REALLY ARE AND WHAT OUR RIGHTS REALLY ARE AND HOW TO SUCCESSFULLY
    i.e. VOILA -
    SEE ROSA PARKS – NO LONGER BANISHED TO THE BACK OF THE BUS BECAUSE THE JURY SAID HELL NO, WE ARE NOT GOING TO TAKE THIS BS ANYMORE

    WE HAVE SPECIFICALLY NOT BEEN TAUGHT HOW TO OPERATE OUR CONSTITUTION AND ASSOCIATED BILLS OF RIGHTS, IN ORDER THAT WE FORGET WHO WE ARE AND WHAT ARE TRUE RIGHTS ARE GRANTED FROM THE CREATOR, NOT THE STATE OR GOVT. WE ARE NOT HERE FOR THE BETTERMENT OF THE GOVT THAT IS NONSENSE AND A VERY MYOPIC PROLETARiAT POINT OF VIEW.
    WE YIELD AND WAIVE OUR RIGHTS THROUGH OUR OWN IGNORANCE OF HOW TO CAPTAIN OUR SHIPS IN THE SEA OF LIFE … AND MORE SPECIFICALLY IN THE U.S. COURT SYSTEM, WHERE ALL THE GREATEST COMMERCiAL MARITIME BATTLES HAVE BEEN WON OR LOST … OUR RIGHTS, UP TO US TO DEFEND THEM, OUR FAULT, IF WE DON’T, NO ONE ELSE’S.

    LEARN THIS NOW:

    THE OATH IS THE SLEDGE HAMMER For We the People …
    WHY ???
    BC IT IS THE MECHANISM BUILT IN TO KEEP THE SERVANTS FROM BECOMING TYRANTS.

    YOU DON’T HIRE A HOUSEKEEPER TO COME INTO YOUR HOME, KICK YOU IN THE TEETH, STEAL ALL YOUR MONEY, LOCK YOU IN A CLOSET, and TELL YOU THEY ARE RETURNING NEXT PAYCHECK TO DO THE SAME THING AND SCREW YOU … would YOU?????

    SO THAT IS WHAT THE OATH IS, OUR TOOL TO KEEP THE SERVANTS FROM BECOMING TYRANTS, BUT WE WERE CONVENIENTLY SCHOOLED IN THE U.S. where NO ONE, and I MEAN VIRTUALLY NO ONE, PERCENTAGE WISE, knows how to read, let alone exercise their rights secured in the constitutions … and therein lies the TRUE PATRIOTS problem …

    AN EDUCATIONAL REVOLUTION TO TEACH THE PEOPLE THEIR RIGHTS AND HOW TO KICK THESE DIRTY RATS OUT OF OFFICE ONCE AND FOR ALL, OR WE WILL O SE EVERYTHING ….
    NOW IS THE TIME … NOW
    PLEASE FOCUS ON THIS ONE POINT AND I WILL SHARE MUCH MUCH MORE IF ANYONE IS TRULY INTERESTED :

    FOR EXAMPLE

    PERJURING ONE’S OATH RENDERS THEM SUBJECT TO
    USC TITLE 18
    ChAPTER 13
    Subsections 241-242
    OPERATING UNDER COLOR OF LAW

    WHY ARE WE THE PEOPLE NOT EXERCISING OUR CONSTITUTIONS AND BILLS OF RIGHTS ??? IF WE DO NOT USE THEM WE WILL CERTAINLY LOSE THEM AND SOONER THAN LATER

    START SERIOUSLY ENFORCING THE OATH, SECTIONS 3 & 4 of the 14TH AMENDMENT, which ARE SELF EXECUTING BY AND THROUGH THEIR oWN ACTIONS, WE ONLY NEED TO POINT IT OUT AND REMOVE THEM VIA OFFICIAL ACTION(S) …

    MAHALO FOR YOUR SOAP BOX PLATFORM
    PLATO808

  • plato

    The Key here is that you cannot, per say, go after agencies, administrations, organizations, institutions, corporations, etc.

    WE THE PEOPLE must target the individuals acting improperly within these agencies, administrations, organizations, institutions, corporations, etc.

    By and through their own actions and words, the self executing sections 3&4 of the 14th Amendment mean they are done, but only if WE THE PEOPLE EXERCISE AND LEARN TO EXERCISE OUR CONSTITUTION

    LETS MAKE IT A NATIONAL SPORT AND DEVELOP A PLAN TO IMPLEMENT PLENTY OF EXERCISE – NATIONALLY SPONSORED CONSTITUTIONAL EXERCISE CLASSES OFFERING THE MASSES ALL THE LATEST WORKOUT ROUTINES !!!!

 

 

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