California to buy Exxon Mobil
Democratic and Republican lawmakers in Sacramento just might be bailed out of their budget standoff by a new initiative that would slap a one-time wealth tax of 55% on Californians rude enough to have $20 million or more in property. The ballot measure wouldn't come to voters until June 2010 at the earliest, but that might not be a problem, seeing as how the current year's budget will probably still be stalled.
Secretary of State Debra Bowen announced today that the initiative is entering circulation. See the announcement here (pdf), and the initiative language here (pdf). The approach is, on the surface, the same as the Democrats' plan for closing California's gaping budget hole -- get it from the rich with new tax brackets. But the numbers differ and, when you get to the details you realize that this measure is creative. And by creative, I mean weird.
Most of the revenue would be used to balance the budget provide for the poor improve education build rapid transit, umm, no, try again.
Most of the revenue would be used to buy Exxon-Mobil. And Chevron. And GM, Ford, Goldman Sachs, J.P. Morgan Chase, and Citigroup. Why? To assure California of an adequate supply of energy, at stable prices, without offshore drilling. And to repatriate off-shore manufacturers.
Oh, and to restore the Hetch-Hetchy Valley, which currently is a reservoir supplying water to the Bay Area, to the way it was at the beginning of the last century.
So, rich folk, you say you'd just take your money and Chevron stock and move to Telluride? Or the Bahamas? These guys are way ahead of you. The wealthy would have to pay to leave the state, whether their mode of exodus is a limousine or a pine box.
Gotta read the fine print.
Bowen approved another initiative for circulation -- this one to make election Tuesdays into state holidays. Might as well. Since so few Californians bother to vote, they may as well not vote during a long weekend as not vote during a workday.
Paul McCauley, old boy, I think you might have nuked the fridge on this one.
Posted by: Jason S. | August 05, 2008 at 10:15 PM
Good lord, are you serious? Can such a notion even be seriously entertained anywhere in this country? Obviously yes.
Forgetting the fact that the state has no business buying stock in any country, where do they get off even presenting this as a tax. It isn't a "tax," it's a robbery. It's a marxist, irrational, terrifying, economic insane robbery.
Posted by: pfjo | August 06, 2008 at 11:00 AM
I love the part about RICH people having to PAY TO LEAVE THE STATE…hahahahahahahahaha.
…apparently, the word “Californian” must mean “sucker” in Spanish!
Posted by: Robert Jordan | August 06, 2008 at 12:44 PM
Why steal from the rich to buy companies when you can just steal companies. Thats what Putin did and he seems to be pretty on the ball.
I shouldn't complain however because I live in Boston. We just put a whole bunch of tax incentives in place to attract movie production to our state. If this initiative passes then Boston may become the new Hollywood. LA would of course become the new...Detroit?
Posted by: andy | August 06, 2008 at 02:11 PM
Is there any wonder why the taxpayers (i.e., "the rich") are leaving CA? Anyone wonder why we have a "brain drain" going on?
This is little more than Marxist BS.
Posted by: Joshua Park | August 07, 2008 at 01:21 PM
Friggin' Commies.....does the initiative fund the friggin' gulags as well?
Posted by: Nunca | August 07, 2008 at 02:18 PM
Insane.
What would happen if this actually became, or was about to become, law? The price of the shares in this companies would rocket through the roof, because California would be required by law to buy the shares. What do you do if you have a buyer with deep pockets that HAS to buy? That's right, you can charge him anything you want. California would have to in theory pay billions, if not trillons more than these companies are actually worth.
Then, after the deed was done, the shares in the open market would plummet, because the reason for the run up in price would be over.
In short, the great sucking sound you would hear are Californians throwing billions of dollars at out of state investors to buy nothing but inflated share value. It's like buying air.
Posted by: Rob Stumpf | August 10, 2008 at 10:21 AM
I hope it passes...and the residents of California pay a heavy price for the way they've turned their back's on what made this country what it is today..CAPITALISM
sadly, there are many in the state who would agree with this statement , but for the reason I made it.
Posted by: Bruce | August 27, 2008 at 04:47 PM
“Most of the revenue would be used to buy Exxon-Mobil. And Chevron. And GM, Ford, Goldman Sachs, J.P. Morgan Chase, and Citigroup. Why? To assure California of an adequate supply of energy, at stable prices, without offshore drilling. And to repatriate off-shore manufacturers.”
Actually, the idea of ensuring stable energy supplies and prices for California is just a cover for the real agenda ... the real reason to purchase controlling shares of these companies to force environmental regulations. If California is able to follow through on this idea, the rest of the nation and even the world will suffer as these idiots try to stop "global warming" and these companies are destroyed from within
http://ag.ca.gov/cms_attachments/initiatives/pdfs/i786_initiative_08-0012_amdt_1.pdf
Posted by: pdjskm | August 28, 2008 at 03:12 PM