Showing posts with label larry page. Show all posts
Showing posts with label larry page. Show all posts

Saturday, October 31, 2026

The Race To Bankruptcy Court: Seattle Still Hemorrhaging Businesses, The Freest States In the Country and The Wealth Tax Disaster In California

Let’s check in with our discussion on which city or state government is going to get to bankruptcy court first. Our primary cities in the race to bankruptcy include New York City, Chicago, Los Angeles, San Francisco, and newcomer, Seattle. The state governments that we think are soon heading into bankruptcy include New York, New Jersey, Illinois, and California with Washington state a newcomer to the race.

The reason for returning to this topic in the midst of our corruption series is because there have been some significant developments in the race to bankruptcy court. However, before reviewing the latest news and seeing which state or city is making the best progress towards government bankruptcy, let’s review how these cities and states got themselves into this financial death spiral position to begin with:

  • A government entity keeps expanding its budget, eventually putting pressure on the tax revenue stream it receives.
  • At some point, rather than cut government spending or make its programs more efficient financially, the politicians in charge raise taxes to meet the ever growing government expenditures.
  • The raising of taxes causes some residents and businesses to leave the city or state for less tax burdensome areas, reducing the tax base and reducing the revenue stream.
  • Rather than cut expenses and become more efficient to match the reduced tax revenue stream, politicians in the above cities or states raise the tax burden even more.
  • This causes more residents and businesses to flee the city or state, further reducing the tax base and tax revenue stream.
  • At some point politicians panic and raise taxes more and start cutting vital government services (e.g. police, fire, education) in order to try and balance government spending against the shrinking tax base and revenue stream.
  • The reduction in quality of government services in particular and quality of life in general drives more residents and businesses out of the area.
  • Eventually, the expenses, costs and financial liabilities outstrip the reduced tax stream and bankruptcy occurs.
Okay that’s the process. Let’s see what is going on with the top candidates in the race to bankruptcy court.

1)We have previously often discussed the many businesses that have moved and businesses out of Seattle, diminishing the tax base with each move. As we discussed above, this out migration is a very serious symptom of a city or state heading down a financial death spiral.

And it appears that the outward movement of city businesses in Seattle is not going to abate anytime soon:
  • According to a recent survey conducted by the Downtown Seattle Association and the Seattle Metropolitan Chamber of Commerce, about half of the businesses in Seattle are considering moving or downsizing their business.
  • 56% of those surveyed say the city business climate has gotten worse, 61% are pessimistic about the next 12 months, 47% considering moving jobs out of Seattle.
  • 72% say the city’s taxes, fees, and business regulation burden are not competitive.
  • Jamila Conley is the owner of WeRise Wine Bar in the city: “Now I understand why people go to Bellevue. You travel five miles over the water and your minimum wage drops, your insurance drops, your taxes drop and it’s just like, ‘oh I get it.’ I am Seattle ride or die, but it sure does look appealing.”
  • She points out that wages due to one of the highest minimum wages in the country are going to rise again next year making it even harder for a small business to be profitable.
  • Conley points out a reality that we have discussed many times before when politicians keep irrationally raising the minimum wage: the good news is you just got a raise, the bad news is that you no longer have a job since we cannot afford the higher wage rate: “I support all of that, but you can’t do that in a vacuum because all you’re doing is like, yeah, this person used to be able to have this job, but if the place they’re working can’t afford them anymore, how is this helping?”
  • Conley went on to explain that she had to put up a security gate in front of her business to keep her employees safe.
  • She often found homeless folks, drug addicts, and other shady characters hanging out at her front door.
  • 64% of those polled said that taxes and public safety.crime were the main challenges to doing business in the city.
None of this is a surprise: high taxes, high homeless rates, high crime rates, out migration of residents, businesses and tax revenue, and before you know it, bankruptcy.

2)The Cato Institute recently completed a large study and analysis where they ranked states from an economic freedom perspective. They scored each state across a series of economic indicators and then compiled those indicators into a final rating.

The final comprehensive rating was interesting:
  • States that we have discussed that are receiving many of the businesses and residents fleeing the bankruptcy trending cities and states are Texas and Florida, ranked as the 3rd and 9th best states from a freedom perspective.
  • This isn't a surprise as people flee to places where they can keep as much of their hard earned wealth as possible since the more financial freedom you have the more personal freedom you have.
  • Also, businesses and residents are fleeing Seattle and the state of Washington and moving to Idaho and Montana which ranked as the 2nd and 8th freest states in the country.
  • However, the least free states, as analyzed by Cato, tell the best part of the story.
  • We have long maintained that New Jersey, New York, California, and Illinois are the most likely state governments to go bankrupt.
  • And they just happen to rank as the 46th, 47th, 48th, and 42nd worst states from a freedom perspective.
Not a surprise: why stay in a city or state that has high taxes, high business regulations, and bad quality of life situations (high crime, high homelessness, etc.)? And it is doubtful that the politicians in cities and states that have the lowest amount of freedom are going to give up that control anytime soon. All of which just accelerates their decline into a financial death spiral as Americans and businesses head for the freest states.

3)We have often talked about the inane tax proposal in California where state billionaires would face a one time 5% tax on their wealth, not their income. This would require many state billionaires to each fork over billions of dollars to a state government that has proven time and again that it is not a good steward of taxpayer wealth, wasting it on projects that never get completed, fraud schemes that rob government programs, or kickbacks to their political allies.

And no sane person believes that this is a “one time” tax.Once politicians get their hands on any new tax source they will almost always exploit it and expand it.

As a result, state billionaires are not stupid, many of them have already left the state, taking their wealth and current and future tax liabilities with them:

  • Google co-founder, Larry Page, has moved to Florida to avoid an estimated $11 billion tax hit.
  • Google co-founder, Sergey Brin, has moved to Florida to avoid an estimated $11 billion tax hit.
  • Meta/Facebook founder, Mark Zuckerberg, has purchased a home in Florida and is threatening to move out of California.
  • Paypal/Palantir founder, Peter Thiel, has moved to Florida to avoid the wealth tax estimated to be about $1.7 billion for him.
  • Former Uber CEO, Travis Kalanick, has moved to Texas to avoid the wealth tax.
  • Tech investor of Craft Ventures, David Sacks, has moved to Texas to avoid the wealth tax.
  • Auto Finance billionaire, Don Hankey, has moved to Nevada to avoid the wealth tax estimated to be about $180 million.
As we have discussed many times, not only will the state government lose out on the potential wealth tax revenue that has now left the state, but these billionaires will no longer be paying high state income tax rates, high property tax rates and other government taxes for years and years to come. Thus, the state will lose tax revenue from these other tax streams.

Up to this point in time, we didn't have the data to estimate how much these other tax streams would be negatively affected. But a recent study and analysis from the Hoover Institute did just that:

This paper examines the revenue and migration impact of the 2026 California Billionaire Tax Act, a one-time 5 percent tax on the worldwide net worth of individuals exceeding $1 billion. Using data from the Forbes Billionaire List, news reports detailing the residential real estate holdings of California billionaires, and public announcements of billionaire departures from the state, we estimate the behavioral response and associated revenue loss to this new tax using several different methodologies. Even before accounting for reductions in other tax bases such as the income tax, we estimate that the Act will collect approximately $30 billion (range $28 to 36 billion), less than a third of the $100 billion projected by Galle et al. (2025). This range accounts for the publicly confirmed taxpayer migration that has already eliminated nearly 30 percent of the Act's wealth tax base, applies a litigation-survival discount to the remaining base, and is validated by the wealth tax base elasticity literature. We estimate that California's billionaires contribute $3.3–5.8 billion annually in state income taxes. The present value of permanently lost income tax collections from departures more than offsets the one-time wealth tax revenue, yielding a net present value of negative $38.9 billion. Across 100,000 simulated revenue and discount rate combinations, 85 percent of plausible outcomes produce a negative net present value of state revenues.

Thus, according to his extensive, professional and thorough analysis:
  • This potential wealth tax will not deliver an extra $100 billion in tax revenue.
  • In fact, the analysis estimates that only about one third of the expected $100 billion will be generated by the tax since many billionaires have already left the state, taking their potential wealth tax revenue with them.
  • Given fewer billionaires to tax, the bottom line is that the wealth tax, if enacted, will not generate an additional $100 billion in tax revenue but will suppress the entire state government tax revenue stream by almost $39 billion.
So a state with serious financial difficulties already, and a prime candidate of ours to go bankrupt, will dig a deeper financial hole if the wealth tax is enacted. And even if not enacted, the fear of the tax drove out high paying tax residents already, suppressing future tax revenue even if the wealth tax is not enacted.

Thus, as discussed above Seattle, New York, New Jersey, California, and Illinois still appear to still be in the running to become the next major city or first state government to go bankrupt as politicians in those government entities do not understand the relationship between freedom, over taxation and regulation, and elementary economic principles

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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

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Thursday, March 26, 2026

March, 2026, Part 2, Political Class Insanity - FEMA Funds Stolen For Illegal immigrants in NYC, California Leaks Billionaires, and FBI Documents Show Innocent Americans Were Hunted

 We have  spent a lot  of  time recently talking about which city or state will go bankrupt first. That race to  bankruptcy court seems to be accelerating as politicians in these vulnerable cities and states are starting to realize that their policies and ignorance are causing financial crises across the country.


However, we will step back from that theme for a few days since political class insanity in other areas has continued unabated and needs to  be discussed and ridiculed.


1)We have often shown and proved that many liberal politicians across the country care more about illegal  immigrants than  they do about American citizens. These politicians lavish free food, free shelter, free medical care, and free cell phone service on those that have  illegally entered the country while millions of Americans are homeless, hungry, in need of medical care, and cannot afford health insurance.


An recent research by Judicial Watch show that the Biden administration was especially good at using taxpayer wealth and taxes to make life so much easier for those that broke our immigration laws:


  •  Judicial Watch received over 700 pages of government records from  the Department of Homeland Security from the Biden administration.

  • They found that rather than spend millions of dollars of FEMA funds on Americans that had suffered through natural disasters, Biden illegally funneled that money to care for illegal  immigrants in New York City.

  • And those millions of FEMA dollars got spent in just a few short months.

  • Specifically, Judicial Watch found that $188 million was diverted from the intended FEMA purposes to provide free food and shelter for illegal immigrants

  • The $188 million paid for 24 hour security for and  meals for illegal immigrants staying in 33 city hotels and shelters.

  • Arrow Security, a private security firm, was used to provide security at just two hotels and over a month or so they ran up a bill of almost $3 million.

  • Whitson’s Food Service  charged the Biden administration $583,153 for a single week of food delivery to illegal  immigrants in the 33 hotel and shelter sites.

  • LIC  COM LLC  billed the American taxpayer over $1.2 million for 14 months of food delivery to a single illegal immigrant shelter.


You get the idea: Biden prioritized the feeding, sheltering, and security of illegal immigrants rather than making sure there were enough funds to support the needs of Americans who were suffering through natural  disasters.


2)It has been pretty obvious to those that do  not hate Donald Trump that Obama and Biden weaponized Federal government organizations to  go after Trump and his supporters. And new uncovered government documents prove this point:


  • The FBI has found a “secret room” that secretly housed 1.9 million  government  documents from the Biden  administration which laid out how Jack  Smith in the Justice Department and other government employees stretched the law and made up evidence to discredit Trump.

  • Other documents show how FBI employees pressured news organizations to suppress the Hunter Biden laptop story and the bad and possibly illegal business dealings of the Biden son in order to shield Biden from bad family publicity prior to the election.

  • Former senior FBI employee, Bassem Youssef, has revealed that when James Comey ran the FBI, the Bureau’s hiring practices of the agency were transformed from practices that emphasized a candidate's merit and  expertise to candidates that had political leanings consistent with Comey’s support of Democrats.

  • While Youssef led the FBI’s Communications Analysis unit from  2004 to 2014 he  constantly warned FBI higher ups about civil liberties abuses tied to the Bureau’s spying efforts.

  • He believes that his warnings were not heeded and the Bureau became a political organization and not a law enforcement organization.

  • Specifically: “When I worked in the bureau, in field offices, and then eventually at FBI Headquarters, where I oversaw the Communications Analysis Unit that there was already a process where you could see that from the highest levels of the FBI, meaning the director’s office and the executive assistant directors, that there is a soft recruitment of people of like mind that didn’t necessarily meet the requirements for the job, but they were recruited because of their leaning, which was, in fact, very politically motivated.” 

  • Other government  documents and reports show that the FBi under the Obama and  Biden reigns illegally spied on  hundreds of Americans who had committed no crimes except to have a  different political  leaning than  Obama,  Biden, Coney, and others in the government.

  • In fact, the Government Accountability Office has  officially estimated that the FBI launched roughly 1,200 investigations of politicians, journalists, religious  leaders,  academics  and other potential  political adversaries.

  • More from  Youssef:  “It tells you that the FBI, unfortunately, during the previous administration has cast a wide dragnet that got so many people who were not involved in any way. And I hate to use that word, but it’s really framing those people for some kind of malfeasance when there really wasn’t in the first place.”


Thus, it appears that government tools and procedures that were  designed to thwart terroism were turned inward to attack parents  speaking out at school board meetings.  Tools and procedures that were designed to fight drug cartels were turned inward to attack  Catholics. Tools and procedures that were designed to dismantle organized crime families were used to spy on and harass pro life advocates, Second Amendment advocates, Republicans in politics, conservatives in the media, and a whole host of innocent Americans who simply had a different perspective and different values than Biden, Obama and Coney. 


An incredible and Orwellian  abuse of government power that endangers our freedoms and our democracy.


3)We have a running theme of posts in this blog which tries to determine which state government  and which major city government will  go bankrupt first. The leading states to go bankrupt include California, New York, New Jersey, and  Illinois. The leading city candidates to go bankrupt include New York  City, Chicago, Los Angeles,  and San Francisco.


What drives this race to bankruptcy  court is usually based on the  economic  ignorance and  obsession to  keep raising taxes of  the politicians in these cities and states. They constantly raise taxes which drives out taxpaying residents and businesses which reduces the tax base and tax revenue stream which  requires the politicians to raise the tax burden  even more, never thinking that maybe less  government spending and more  efficient  government operations  is the better  answer. This higher tax burden drives more taxpaying residents and businesses out of  the state and the financial  death spiral is in place.


Thus, the following bit of  political insanity might fit better in that theme  of bankruptcy but  let’s discuss it  here:


  • A promising state to win the race to bankruptcy court is the state of California.

  • They have the  highest tax burden in the  country and a proposed increase  in the  tax burden on state billionaires might become reality later this year.

  • The  proposal would  levy a one  time 5% tax on  the WEALTH of billionaires living in the state,  not on their INCOME but on their wealth.

  • These folks would not  only have  to pay this onerous wealth tax but would also have to  continue paying sky high income taxes and other state taxes.

  • This would be a substantial pot of money these folks would have to pay and  as a result, many of them have already left the state in order to avoid this wealth insanity, taking  the potential for that wealth  tax and the reality of the taxes they already pay with them.

  • Famous tech billionaires who have  already left include but are  not limited to, Larry Page, Sergey Brin, Peter Thiel, David Sacks, and Chamath Palihapitiya.

  • Various sources estimate those that have  left the state to avoid even more taxation have taken anywhere from $700 billion to one trillion dollars worth of wealth with them.


Thus, not only will the state government and politicians not be able to put a wealth tax  on these folks who have  already fled the state, but it  will  no longer be  able to collect income taxes, property taxes, and other taxes from the richest of the richest. 


Thus, just the discussion and potential of such tax nonsense has already inflicted  significant harm on the state government’s tax revenue stream. In addition, these folks will probably not be spending their wealth in the state on  cars, boats, clothes, home improvements, entertainment,  etc. So it is not just the tax issues that are troublesome but the  economic ripple effects of reduced and disappearing billionaires spending habits will  have economic  and  tax downsides for the entire state economy.


And the real reason for the tax is that the state government can no longer fill its basic  needs. This tax was  not meant  to be a one  time boost to build better schools, fix the  state’s infrastructure, pay down debt, etc. It is meant  to fund current state operations that have grown  out of control and beyond the current tax base. It is a one time temporary fix that will  do nothing to get California out of the race to  bankruptcy court.


Enough political class insanity for today: California continues to race towards bankruptcy by alienating the biggest tax payers in the state, Obama, V=Biden,  and Comey made Orwellian government possible, and Biden decided that illegal immigrants were more important than  Americans suffering from natural

 disasters.


**********************

If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:
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Thursday, January 1, 2026

January, 2026, Part 1, Political Class Insanity: Biden's HUD Was Corrupted, The FBI Gave Hillary a Free Pass, A Wisconsin Judge Breaks the Law and More

 Let’s start this year off with some good old fashioned political class  insanity where the wasting of taxpayer dollars and the corruption and incompetence of government programs never cease to provide a dismal picture of how inept the American political class continues to be.

1)It really says a lot about how corrupt our government and politicians have become when one arm of the government, the judicial system, starts to break down and take the law into its own hands. Judges and judicial systems at all levels of government should be totally focused on executing the laws that the other two government arms enact, personal feelings and prejudices should never enter into judicial proceedings, something that recently did not happen in Wisconsin:

  • A Milwaukee County jury recently found a sitting judge, Hannah Dugan, guilty of felony obstruction.

  • She blatantly helped an illegal immigrant evade arrest by Federal law enforcement officials.

  • When Dugan found out that immigration agents were present in her courtroom,  looking to apprehend illegal  migrants that had violated existing immigration laws, she disregarded her oath to fairly enforce existing legal  laws.

  • According to the FBI, Dugan  “intentionally misdirected federal agents away from the subject to be arrested at her courthouse.” 

  • This action was verified by courthouse cameras that showed the judge, while still in her robes, leading an illegal migrant to safety via a private jury door in the courthouse.

Obviously, this is a despicable intrusion of a judge’s personal views interfering with her role as an unbiased arbiter of the laws that were properly enacted by the  two other branches of government. It is a violent attack on voting rights and First Amendment rights and she deserves the consequence of her criminal actions.

We have  all  too often  discussed the corruption of those serving as President and those serving in Congress. It is a dangerous step when judges also corrupt our laws to align with their personal views.

2)Far too many times we have  pointed out how Federal government  programs are almost always, okay  always, corrupted by criminal fraud,  ineffective auditing, and waste. The unfolding disaster in Minnesota where Somali  immigrants have pilfered  upwards of at least $9 billion from Covid and Medicare programs for their own use and abuse is just one of many despicable wasting of taxpayer wealth.

But it is not just Covid and  Medicare funds that are being stolen as the following story shows how another government agency during the Biden administration also had a large problem with criminal fraud and waste:

  • A new report from the Department  of Housing and Urban Development  (HUD) has shown that billions of taxpayer dollars were  diverted into "questionable" recipients via government housing assistance during the Biden  administration.

  • According to New  York  Post reporting,  about 30,000 dead tenants within the government’s  housing program were either still enrolled in  rental assistance programs  or  continued receiving benefits after their deaths.

  • The HUDF report also  found that  thousands of  people  enrolled in the government  assistance program did not qualify for aid and taxpayer funded checks.

  • While the abuse occurred in all  50 states, the abuse was concentrated in  New York, California, and Washington DC, three areas that have been donated by Democrats in office for decades.

  • Current HUD Secretary, Scott Turner, ripped Biden for the problem: “A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls, which  resulted in “billions worth of potential improper payments.”

  • In total, in just 2025, the report found that possibly $5.8 billion  should not have been paid out  because Biden pushed funds “out the door with minimal oversight” and failed to establish effective audit trails of the money being disbursed.

Another day, another few  billions  of taxpayer dollars  lost via another inefficient  and corrupted government program for  which  no  one in Washington is accountable.

3)Corruption is not just when a government  program is ineffective or criminally abused. Government  corruption can take many forms including the following FBI alleged corruption of their integrity:

  • Recent FBI disclosures reveal  that the FBI  deliberately suppressed investigations  into the Clinton  Foundation  in the run up to the 2016 Presidential  election.

  • Back  then, FBI New York Assistant  Director, Diego Rodriguez, had prepared detailed  questions for Hillary Clinton  to respond to regarding foreign  nations’ bribery allegations via the Clinton  Foundation.

  • The effort back then was code named “Cracked Foundation” which had uncovered suspected pay-to-play schemes involving foreign governments, information that was recently disclosed by the Senate Judiciary Committee.

  • But this information was not discussed or questioned during Clinton;s July, 2016 FBI interview.

  • In another FBI investigation interview of her two months later, nothing was asked about any foreign bribery suspicions.

  • For  example, Zerohedge reported in  2016 that Saudi Arabia had funded about 20% of Clinton’s Presidential  campaign as told by the Saudi Crown Prince tpo a Jordanian news outlet.

  • If this is true,  it would be  a blatant violation of Federal campaign law which prohibits any foreign nationals or interests from donating to American political  campaigns.

  • Wikileaks’publication of leaked emails reported back then that Clinton's campaign manager, John  Podesta, allegedly responded “Take the  money” when campaign advisors warned him about accepting cash from foreign agents 

  • The Wikileaks reporting also allegedly showed that Clinton was personally involved  in getting a $12 million commitment  from the King Of Morocco.

And this corruption does not even include the corruption of her government communications during her tenure as Secretary of State where she used unsecure computer servers in her home to conduct government business, a process  that was easily hacked by multiple foreign intelligence agencies. Furthermore, it does not include the corruption of her staff physically smashing server hard drives and cell phones to  cover up her illegal use of unsecured computers.

4)I think  it was Einstein, a very smart man, who once observed: “The definition of insanity is doing the same thing over and over again and expecting different results.”  We have often discussed the reality that several  state governments (California, New Jersey, Illinois, New York) are likely to go bankrupt  relatively soon given, given the economic and common sense ignorance of their politicians and  Einstein's wisdom:

  • State government politicians constantly raise taxes but never make the necessary steps to align government spending with their tax stream.

  • As government programs get bigger and more numerous, the state government politicians realize they do not have enough tax revenue to  cover their expenses.

  • They then raise the tax  burden on residents and businesses, which drives residents and businesses to leave the state for states with less of a tax burden.

  • This exodus reduces the tax base and government tax revenue which causes politicians to raise taxes even more which drives more residents and businesses out of the state which reduces tax revenue and the  bankruptcy financial death spiral  is underway.

We have reported many times on how this raising of taxes always results in less government revenue and more financial strains on government politicians that refuse to reduce government spending.

And California continues to ignore this basic economic principle:

  • California politicians are considering installing a new type of tax on the  wealthiest state residents.

  • They want to tax the wealth of the richest state residents in  addition to taxing their income.

  • Specifically, they want to tax total wealth, not income, 1% a year for the next five years,

  • Of course, after five years the politicians will probably both extend the tax and increase the percentage that is taxed.

  • But according to news reports  and sources, at least a few of the state’s  wealthiest are considering leaving the state to avoid yet another California state tax burden.

  • These billionaires include tech venture capitalist, Peter Thiel, and Google co-founder, Larry Page.

  • Of  course, state politicians like  Ro Knana do not get it since she said those leaving the state are not a problem.

If residents like Thiel and Page do leave the state, the state government not only loses the wealth tax revenue but they will  lose the income tax that folks like these pay into state government coffers, a loss that would dwarf what the state would have gotten from the wealth tax. 

When California resident Joe Rogan signed a $100 million  deal with Spotify,  one  of  the  first things he did was move to a low tax burden state,  Texas, saving himself millions of dollars. Thus, California politicians should know better than to constantly raise taxes on the wealthy. But according to Einstein they continue to do the same dumb taxation things over and  over and expect different results which never come.

Enough insanity for today: California continues  to  commit financial suicide, corruption at Biden’s HUD, FBI gives Hillary a free pass and a Wisconsin judge decides to break the law.

**********************

If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:
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