Showing posts with label taxation. Show all posts
Showing posts with label taxation. Show all posts

Wednesday, August 5, 2026

The Race To Bankruptcy Court: A Local View Of Why Seattle Is A Strong Contender To Win The Race

Let’s take a brief break from our run of posts regarding the massive corruption and fraud in government programs along with our political class insanity thread and return to one of the hottest topics we have been covering over the past few years, coverage that has intensified recently: which major city or state government will 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. Rather than do a general review of the  different  states and  cities entering or already in  their financial death  spiral as we usually do, today we will  do something a little different.

We have permission  from the Future 42 folks to copy and republish a recent piece they did regarding the troubles going on in Seattle.  As readers of  this blog know, Seattle was not in our original list of cities likely to go bankrupt pretty soon.  However,  long term trends and the mistakes being  made by the current  mayor, Katie Wilson,  have  propelled Seattle into the middle of the bankruptcy race.

Since the Future 42 folks are local to the Seattle area, they have a much  better picture and vibe on what the troubles are in the  city and  thus, our request to publish their views here. The article we are republishing here can be accessed directly at their website at the following link:

https://future42.org/is-mayor-wilson-actually-capable-of-leading-seattle/

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Is Mayor Wilson actually capable of leading Seattle?'
A Future 42 Special Article

The long-beloved Bite of Seattle festival beneath the Space Needle became the scene of a deadly shootout Sunday evening, leaving three people dead and four others wounded, including a 2-year-old boy.

Seattle police believe multiple people exchanged gunfire outside the Seattle Center Armory during the event. A 15-year-old was quickly taken into custody, but investigators continued searching for another person believed to have opened fire before fleeing the scene.

At a moment like that, Seattle residents needed clear and immediate information.

They needed to know what happened. They needed to know whether another shooter was loose. They needed to know what city officials were doing to protect the public and how witnesses could help police find the person responsible.

Instead, they waited nearly five hours for a public briefing.

As Change Washington detailed earlier this week, Seattle Mayor Katie Wilson initially released a statement claiming that two people were in custody. She updated it without an announcement, after media had already begun disseminating the inaccurate information.

When city leaders finally appeared before reporters around 11 p.m., Seattle Police Assistant Chief Tyrone Davis confirmed that only one suspected shooter had been detained and another person had fled the scene.

For nearly five hours, families who had scattered from Seattle Center did not know that someone believed to have opened fire in the middle of a crowded public gathering had escaped.

That delay also cost investigators critical time. Witnesses had fled in every direction. Many had recorded videos, seen the shooters or observed what happened immediately before the gunfire began. Yet the public request for information did not come until hours later, when memories were fading, and potential witnesses had already returned home.

Police regularly provide preliminary briefings during major emergencies for exactly this reason. Officials do not need every detail before telling the public what is known, what remains unknown and how people can help.

Seattle’s leaders chose not to do that.

The initial explanation was that officials were waiting for “dignitaries” to arrive before beginning the press conference. But newly released records obtained by The Center Square appear to undermine that excuse.

According to The Center Square, text messages between Wilson and Gov. Bob Ferguson show the governor was nearby but was not told to come to the Seattle Center until after 10 p.m. Ferguson’s office also stated that the governor did not ask Wilson to postpone the briefing. Crucially, the phone records were NOT released. It’s imperative to know what other conversations may or may not have occurred between leaders that weren’t in writing. Citizens should demand full transparency from the “dignitaries” who upheld getting crucial information out.

Wilson has denied delaying the press conference to accommodate political officials. Yet a Seattle Police Department source told FOX 13 that police leadership was prepared to brief the public hours earlier and was asked by the mayor’s office to wait.

Someone made the decision to keep police from speaking.

Katie Wilson is the mayor. Responsibility ultimately rests with her.

Seattle Police Chief Shon Barnes has now been fired, according to multiple reports. Barnes was attending the National Organization of Black Law Enforcement Executives in Dallas when the shooting occurred and had faced mounting questions about how frequently he traveled outside Seattle while his family reportedly continued to live in Chicago. He then abruptly canceled a scheduled Wednesday interview about his travel and the department’s response.

Wilson was right to hold Barnes accountable. But firing the police chief does not absolve the mayor or explain why Seattle residents were kept in the dark for nearly five hours.

Law-enforcement leaders who were in Seattle were reportedly prepared to brief the public much earlier in the evening. They were not allowed to do so. Barnes may bear responsibility for being absent during a deadly crisis, but he was not the person who reportedly prevented the officers on the scene from communicating with the public.

That decision leads directly back to the mayor’s office.

Wilson cannot fire her police chief and expect Seattle residents to conclude that the city’s leadership failure has been resolved. Barnes was responsible for the police department, but Katie Wilson is responsible for the city government—including the people who reportedly instructed police to remain silent while a suspected shooter was still at large.

Most importantly, can residents of Seattle have faith in Mayor Wilson to choose a reliable, competent, and focused successor (preferably one who will reside in the city full time)?

Before becoming mayor, Katie Wilson had never run anything remotely comparable to the City of Seattle.

Her primary management experience was leading the Transit Riders Union, a small but politically effective advocacy organization with approximately $198,000 in annual revenue and only a handful of employees. She had never held public office, managed a government department, overseen a major institution or been responsible for emergency operations.

Seattle voters elevated her directly from community organizing to responsibility for a city government with approximately $8.9 billion in annual appropriations and thousands of employees.

Running an advocacy campaign is not the same as running a city.

Advocates pressure other people to make decisions. Mayors must make those decisions themselves. They must manage professional staff, coordinate departments, balance competing priorities and provide command during emergencies.

The warning signs appeared almost immediately:

* Her first major drug-policy action created immediate controversy.
* Her State of the City revealed an administration still developing basic plans.
* She acknowledged the homelessness strategy was failing but continued much of it.
* She avoided questions at the rollout of her own signature policy.
* She offered no convincing police-staffing or crime-reduction agenda.
* She sought to expand tiny-house villages without resolving serious questions about conditions inside them.
* She cleaned up encampments in tourist areas ahead of the World Cup while allowing residents in other neighborhoods to continue living with the same disorder.

Any one of these failures might be dismissed as the mistake of a new administration.

Taken together, they reveal something much more serious.

Katie Wilson entered office without the executive experience necessary to manage a city facing severe public-safety, homelessness, addiction and financial challenges. Since taking office, she has shown little evidence that she is growing into the responsibility.

The handling of the Bite of Seattle tragedy suggests things are getting worse when they desperately need to get better.

Three people were killed in one of Seattle’s most prominent public spaces. Another suspected shooter escaped. Police were reportedly prepared to speak, yet the public briefing was delayed for hours. The mayor’s office issued incorrect information, offered shifting explanations and failed to quickly enlist the public’s help.

This was not a disagreement over ideology. It was a fundamental failure of executive leadership during an emergency.

Wilson asked Seattle residents to judge her administration “first and foremost” on homelessness and public safety.

They should take her at her word.

On homelessness, Wilson has acknowledged failure without demonstrating a meaningful change in direction. On public safety, she has failed to present a convincing strategy and then presided over a communications breakdown that withheld critical information while a suspected shooter remained at large.

Her lack of judgment and command is more than merely embarrassing. It is putting the safety of Seattle residents and anyone visiting the city at risk.

The question is not whether Katie Wilson needs more time to grow into the job. Seattle cannot serve as an internship for an unprepared mayor.

Wilson has demonstrated that she lacks the experience, preparation and decision-making ability the office requires. The deadly confusion after the Bite of Seattle shooting should be the final warning.

Seattle needs a mayor who is ready to lead now, not one who is still learning how.

Maybe it’s time for Seattle to say, “like…bye” to Katie Wilson as Mayor.

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For a city in financially bad shape, having almost a half a billion  dollars budget shortfall in the next three years,  and being led by a woman  who has no substantial  administrative, executive or political  smarts and experience  as outlined by Future 42, with businesses and residents fleeing the city and taking their tax dollars with them,  Seattle is  now firmly in place to be the next American  city to win the race  to bankruptcy  court.

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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



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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:


Wednesday, July 15, 2026

The Race To Bankruptcy Court: New York Shrinks Its Millionaire Base, California May Lose Paramount, Chicago Has Lost True Value, and Seattle Just Keeps On Taxing

  Let’s take a brief break  from  our run  of posts regarding the massive corruption  and fraud in government  programs along  with our political class insanity thread  and return to one of the hottest topics we have been covering over the past few years, coverage that has intensified recently: which major city or state government will 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, now lets check the progress some of the above listed government entities are making to achieve this bankruptcy goal against this process:

1)One of the best states in driving high tax paying residents and businesses out of their respective states is New York. High taxes, high business regulation, high crime rates, and other  lower quality of life issues have shrunk the tax base and tax revenue stream. And a main driver  of the lower tax base is discussed below:

  • According to an analysis by the Citizens Budget Commission, millionaires moving  out of the state cost the state $10.7 billion in  personal  income tax revenue in 2022.

  • The study found that in  2010,  New York was  home to 12.7% of the country’s millionaire base.

  • By 2022, that share has fallen to  8.7%, the largest decline of any state,  a 31% decrease.

  • Economist Jared Walczak  recently told the New York Post: “In New York, the top 1% of earners pay about 45% of all state income taxes in any given year, so New York’s revenue is very reliant on high earners to stay in New York, and that has been a challenge in recent years.” 

  • But this loss of high warners and  high taxpayers was measured four years ago and does not capture the  reality that the  out-migration of the tax base’s most profitable taxpayers has accelerated since 2022.

  • According to Mr.  Walczak:  “New York isn’t done raising taxes, and … it won’t be surprising if high-earner taxpayers choose to relocate.”

  • More bad news: the Tax Foundation's  business competitiveness index  ranks New York as the worst state to do business  in  based on a number of factors.

  • According to Audrey Yushkov of the Tax Foundation:  “Without reforming the tax structure, New York won’t be competitive for attracting population and business.  Wall Street is the golden goose. But for how long?”

As you can see, New York has been in a tax base shrinking mode for a while as high  earners and high  taxpayers leave  for  more  economical locations. Unfortunately, as the above analyses  and  experts have pointed out, continually raising the tax burden continually drives taxpayers  out of the area.  Which strengthens  our assertion that New York City and New York state continue to be leaders in the race to bankruptcy court.

2)California  and  Los Angeles are still contenders for bankruptcy court. Billionaires, millionaires, and major and  small businesses have  been migrating  out  of the state  for years, making significant reductions in the state and  city tax base.

Companies from a whole spectrum of industries, including such companies as Chevron, Yamaha, Tesla, Toyota, and Charles Schwab, have  already moved most if not all of their company operations out of  the state. But Hollywood  and the  long running California  show  business entertainment  industry may soon also be  a  victim  of outmigration of tax assets:

  • According to the RedState website, Paramount,  a film making icon of Hollywood and Los Angeles, is considering moving its entire film operation out of California.

  • The straw that may break camel’s back is a threat from the state government to  block Paramount's  $110 billion takeover  of Warner Brothers  Discovery.

  • Paramount CEO, David Ellison, has been  advised by  friends and business  partners  to consider moving Paramount out of the state where  a merger would likely be easier.

  • The warning signal  is that the state  government’s  Attorney General,  Rob Bonta, has threatened  to sue  to block the merger.

  • A move out of state is estimated to take  $30 billion in planned spending and investments by Paramount to other locations.

  • While other  Hollywood and entertainment  entities  have already moved  assets and the related tax revenue out  of state, a move by Paramount to  another state would be a  massive hit to  the show business  industry  in LA and the state.

  • The Attorney General claims his threat of an anit-trust lawsuit  is about protecting jobs and consumer  choice but if Paramount moves out of state there will be no job protection for the local employees who  likely lose their Paramount  jobs.

  • Ellison and his  advisers claim they have tried to negotiate with the Attorney General but have been frustrated by his hardline stance.

It  is amazing that state and city politicians in the state STILL do not get it: high taxes, intrusive and  onerous business regulation, political posturing, and  a declining  quality of life have been forcing residents and businesses out of the state for years. And now a longtime California and LA bedrock company in the  show  business  industry is seriously contemplating moving out of the state,  taking economic  power and tax revenue with it.

As the old saying goes: there  is no cure for  stupid and California politicians  continue  to prove that every day.

3)But  New York and California still need to make sure that  strong  competitors,   Illinois and Chicago, do not  pass them in the race to bankruptcy court since the state and  city just got a massive massive hit to their respective tax bases:

  • For almost eight decades (78 years) the hardware store  company, True Value,  has  been headquartered in Chicago.

  • But it looks like the company  will also be joining the many other large  and small businesses  that have recently fled  Chicago and Illinois for  better tax and business locations.

  • True Value has  announced it is moving its headquarters out of Chicago and  the state and heading for Fort Wayne, Indiana.

  • True Value  joins Caterpillar,  Boeing, Morton Salt, Tyson Foods, and  Citadel that have already left the city and state, taking jobs, economic power, and taxes with them.

Much like  the California politicians,  the Chicago and Illinois politicians do to get it either. And as  a result, both the  city and the  state are  already in financial death spirals as described above and they have no clue how to stop it.

4)Finally, let’s check in with Seattle, a latecomer in  the race to bankruptcy court but coming on  strong:

  • Seattle now has the  highest downtown business office vacancy rate in the country as businesses  flee the high tax environment that city officials have created.

  • As  a result  of the increased business downtown  vacancy rate, the Downtown Seattle Association says the tax burden of the high vacancy rate will shift more  taxes onto city home owners  and renters.

  • The vacancy rate  is now estimated at a whopping 36.5% according to the real estate firm, Cushman and Wakefield.

  • Many believe that the city’s so-called Jumpstart employee payroll tax helped drive companies and about 30,000 jobs out of the city.

  • As a result, the city government faces  an almost half a  billion dollar budget deficit over the next three  fiscal  years.

  • And as a result, the mayor of the city, Katie  Wilson, says  that even more  taxes including  a city capital gains tax and an expanded payroll tax would help  solve some of the budget shortfall even  though high  taxes  is what started the city's financial death spiral to begin with.

  • Jon Scholes, president of the Downtown Seattle Association, agrees: "Well, I think it's the wrong move for Seattle and it would continue, I think, to push jobs outside of our city. We don't need more business taxes in Seattle. We need more businesses located here paying taxes. I think it's important for the city to spend within their means. They haven't done that over the last five or six years.  They've spent beyond the revenues that they've collected and they've tried to make up the difference by putting a lot more taxes on Seattle employers, which have sent a lot of jobs elsewhere."

  • The  36.5% vacancy rate and the  out-migration of businesses and jobs, along  with  the associated tax revenue,  has caused downtown business real estate values to decrease  about 50% compared to just four years ago.

  • This decrease  in  value eventually reduces the property tax collection as Mr. Scholes points out:  "That property tax burden really shifts to residents. Those buildings were paying a lot more five years ago to contribute to city property taxes, but also school district property taxes and the county and state property taxes than they are today. So if you care about affordability, you ought to care about downtown Seattle having a high vacancy rate."

As we  have said before: “if you are stuck  in a hole, stop digging.” If  you are overtaxing your  population, stop increasing the tax burden. Seattle  seems to just want to keep digging.

As you can see, the race  to bankruptcy court  continues to be a heated one. Seattle is the late comer, Chicago  continues to hemorrhage jobs and business, California is  possibly going to see  one  of its  biggest assets,  show business, start to melt away, and New York’s tax base continues to  leak  its most valuable tax assets. Stay tuned.

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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: