The Great California Earthquake of 2018: First State To Default

American Thinker:

If only it were just an earthquake.  We could then just repair some damaged roadways or condemn a couple dozen buildings, then resume our lives.  Maybe the Bay Bridge would need a section reattached.  Or the last letter “D” in Hollywood would tip over.  We’d send over some lumber reinforcements.  No problem.  This tragedy, however, has no asphalt-rending fault lines, except the ones in government, where the fault lies.

I would like to direct your attention to something boring but infinitely informative regarding the nature of this mismanaged state.  Employers who utilize labor pay into the FUTA, or the federal unemployment tax, at a rate of 6% and are credited back an offset of 5.4% that they previously paid the state, leaving a small federal liability of only 0.6%.

However, if the state-run U.I. trust gets overdrawn, as it did in California for going on its third year now, it automatically pulls an emergency loan out from the federal government to service the underfunded account.  And if that is not repaid by November 10, and it defaults, then the government forces employers to pay it.

They just defaulted.

more here

11 Comments on The Great California Earthquake of 2018: First State To Default

  1. Time for the employers to revolt. Don’t pay, shut down the company, then move to Texas, Utah, Wyoming, etc.

  2. Just wait until President Trump cuts off all federal funding to the state for being a sanctuary for illegal aliens. There’s going to be a massive depression in California as businesses fold un tents and leave the state for greener pastures. It will last until Californians wake up and force their liberal politicians to obey the immigration laws and start booting out the freeloaders.

  3. Let Meryl Streep pay it. That’s the govt. she and her ilk supports – so let THEM support it.

    But obama will probably write them a large @@s taxpayer funded check before he leaves office, just to give us one more kick in the teeth believe he’s thrown out.

  4. Somebody give me a new math hand up, not a hand out here — is this fake news about fake money, or real news about fake money?

  5. Every morning I check the news to see if justice has been done. That some liberals have gotten their due. But everyday the bad news gets worse and the lib fascists get more power.
    After Sessions hearings and Trumps press conference I don’t see any of these people being held accountable.
    I fear Gingrich was right when he said he was afraid they’d chicken out.

  6. @ Diana– please look in you mirror before you judge. I am here in California and I don’t have a mental illness or the plague. There are still a few non-liberals around and we take our guns and freedom serious. Have a nice day anyway 🙂

  7. just pass’n thru,

    Diana sounds like one of those Southern Cali people that moved to Oregon and than immediately put one of those “Welcome to Oregon, now go back to California” bumper stickers on her car.

  8. Trump’ll bail em out (fucking the taxpayers in the process). This is why the Debt Ceiling was raised by $9 Trillion the other day – so much for the Republicrats being the guardians of probity.
    More Smoke and Mirrors.
    Hang on, folks, the fundamentals haven’t changed – just the pilot.

    izlamo delenda est …


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