• Amazon Tax,  Internet Sales Taxes,  Jerry Brown,  John Chiang

    Amazon Cuts California Affiliate Ties Over Internet Sales Taxes

    Just like they warned the California Legislature and California Governor Jerry Brown. Here is the termination letter I just received via e-mail:

    Well, at least Californians were forewarned.

    Now, what about that assumption in the recently (last night) enacted California state budget? You know, the one that had the state realizing $200 million as a result of this tax.

    Since all of the Amazon Associates, like me are now out of a job, guess that really is a ROSY Scenario and an “unbalanced” budget.

    Over to you, California Controller John Chiang

  • California,  Flap's California Morning Collection,  Jerry Brown,  John Chiang,  Jon Huntsman,  Poker,  Tobey Maguire

    Flap’s California Morning Collection: June 22, 2011

    A morning collection of links and comments about my home, California.

    California Controller John Chiang decided yesterday afternoon that he would withhold paychecks from California Legislators since they did not pass a “balanced” budget by the deadline as specified by Proposition 25. Now, remember they did pass a budget which was quickly vetoed by Democrat Governor Jerry Brown. This budget was not “balanced” enough for the California Controller.

    Oh well – back to the drawing board.

    However, this is not stopping these same Legislators from soliciting campaign cash this week.

    Monday, Republican Sen. Bill Emmerson was looking to bulk up his campaign chest for re-election next year.

    Tuesday saw nine legislators making the restaurant rounds from Spataro to Chops to Esquire Grill and beyond: Democratic Assemblymen Marty Block, Das Williams and V. Manuel Pérez, and Sen. Curren Price; plus Republican Assembly members Dan Logue, Katcho Achadjian, Chris Norby and Diane Harkey, and Sen. Sam Blakeslee.

    Today, these lawmakers continue the quest: Democratic Assemblymen Ben Hueso, Sandré Swanson and Henry T. Perea and Sen. Noreen Evans; plus Republican Assemblymen Brian Jones and Don Wagner, and Sens. Doug LaMalfa and Mark Wyland.

    Who ever said these POLS would be starving with or without balancing the California budget?

    On to this morning’s California links.

    Tobey Maguire Sued Over Multi-Million Dollar Illegal Poker Game; DiCaprio, Affleck & Damon Involved

    Spider-Man star Tobey Maguire is among more than a dozen high-profile Hollywood celebrities being sued in connection with a mega-millions illegal gambling ring that ran high-stakes underground poker games, Star magazine is reporting exclusively.

    Maguire, 35, won more than $300,000 from a Beverly Hills hedge fund manager who embezzled investor funds and orchestrated a Ponzi scheme in a desperate bid to pay off his monster debt to the star and others, it’s alleged.

    An FBI investigation into Brad Ruderman, the CEO of Ruderman Capital Partners, uncovered how he lost $25 million of investor money in clandestine poker games held on a twice weekly basis in suites at the luxury Beverly Hills hotel, Four Seasons, and the Viper Room on Sunset Boulevard.

    Brown Plots New Budget as California Lawmakers Forfeit Pay for Being Late

    California Governor Jerry Brown has drafted a plan to pass a budget through the Legislature that sidesteps Republicans who blocked a previous effort, according to two people with knowledge of the matter.

    Brown’s proposal comes as legislators have been forced to forfeit pay for every day they fail to send a balanced budget to the governor past a June 15 deadline. He vetoed a spending plan sent to him by Democrats last week, saying it used legally doubtful maneuvers and one-time fixes.

    “I’ll be sharing some very specific ideas tomorrow,” Brown said to reporters as he left a meeting with Assembly Democrats yesterday. “There will be several ideas I’ll propose.”

    Timm Herdt: Brown can’t get 4 votes; how can he get 81?

    Legislators, Democrats and Republicans alike, know all that and they simply won’t swallow the bitter medicine that the grown-up Brown says is the only alternative if he doesn’t get the chance to ask voters to weigh in on extending current tax rates.

    From the legislators’ perspective, when compared to their other choices, the idea of muddling through for another year without solving the state’s chronic fiscal problems doesn’t seem like such a terrible option.

    Thus far, Brown hasn’t wavered from the plan he put forth in January. But the new fiscal year begins a week from Friday.

    “The next step is the governor’s,” Senate President Pro Tem Darrell Steinberg, D-Sacramento, said Monday. “If he wants to suggest a budget with significantly deeper cuts to education, health care and public safety, we’ll take a look at it.”

    If Brown is forced to take that step, know this: It won’t be nearly as popular as his veto.

    Huntsman to hold California fundraisers

    Jon Huntsman, fresh off his campaign launch, will host three high dollar California fundraisers next week.

    The former Utah governor will be in San Diego on June 26th, and Orange County and Los Angeles on June 27th. Dinner with Huntsman will cost donors $1,000, while a VIP cocktail reception will cost the primary election maximum of $2,500. Huntsman is also soliciting high dollar bundlers to raise money on his behalf and offering them perks like a seat at the head table and extra VIP tickets for high dollar commitments.

    Enjoy your morning!

  • California,  California Budget,  Jerry Brown,  John Chiang

    California Controller John Chiang Says California Budget NOT Balanced and Refuses to Pay Legislators

    Controller John Chiang discusses his decision to halt paychecks for all 120 state lawmakers after they failed to come up with a balanced budget by the June 15th deadline, during an interview with the Associated Press in Sacramento, Calif., Tuesday, June 21, 2011. Chiang said that he found the plan passed by Democrats on a simple majority vote last week was not balanced and therefore lawmakers did not meet the requirement for getting paid under Proposition 25, passed by the voters in November

    Well, it will really hit the fan now about the California budget. It will be donkey against donkey.

    California lawmakers must forfeit their pay as of mid-June because the budget they passed last week — which Gov. Jerry Brown vetoed less than 24 hours later -– was not balanced, the state controller said Tuesday.

    Since last week, Controller John Chiang, a Democrat, has been pondering whether to pay lawmakers. They passed budget legislation on June 15, meeting their constitutional deadline for only the second time in a quarter-century, but their plan relied heavily on accounting schemes to paper over the state’s deficit. In his veto message, Brown said he could not sign such a plan.

    Chiang, who issues the state’s paychecks, said Tuesday that it wasn’t sufficient to keep their pay coming.

    Voters approved a law last fall that empowered legislators to pass a budget with a simple majority vote but also threatened to strip them of pay for every day the blueprint is late. The measure makes no mention of approving a balanced budget, but other laws on the books dictate that state budgets be balanced.

    Chiang’s decision is widely expected to spur a lawsuit, and lawmakers had begun questioning his authority over their pay even before he made his decision.

    Yeah, here come the lawsuits and the California supreme Court will ultimately decide the issue. But, if I were the Democrats who hold an overwhelming majority in the Assembly and the State Senate, I would get busy and pass another budget – one that is balanced.

    But, then again, the majority Dems would have to vote for unpopular cuts in spending and they don’t really want to do that.

    Pity…..