Tuesday, 13 November 2012

California Cap and Trade Chaos Coming

California Cap and Trade Chaos Coming

By Lance Winslow

It doesn't matter what you call something, if it costs businesses more money, it acts like a tax. Most rules and regulations are like this. We know that taxes cause businesses to fail, or become unprofitable. The famous Affordable Health Care Act (a.k.a. Obama Care) was deemed by The Supreme Court's Stevens a tax, not a mandate, and therefore it was allowed, and since he was the swing vote, it is what it is today. It doesn't really matter that it's not called a tax; it acts like a tax for businesses. Okay so, let's talk about the state I live in for a moment, and what's going on here.

Not long ago, CNBC had an interesting feature on the cable business financial news entitled; "Regulatory Cliff in California," and it discussed that California was starting their Cap and Trade regulations. It would in fact bring money onto the balance sheet of the State of California, which could be a good thing, and California has recently passed a new tax, which the citizens actually voted for if you can believe that or not which will add another $6 billion to California coffers.

Now then, consider this Cap and Trade essentially taxes businesses that put out greenhouse emissions, and it gives tax rebates to those people that have clean energy, or ways to remove the carbon or pollution from the air. The big winner of course is California that gets to oversee it all. The problem is it is starting just prior to the 2013 recession. Initially, with the extra taxes which will now be imposed, along with other onerous regulations, many companies are moving out of state, and they're taking the jobs with them.

Interestingly enough, the State of Arizona is doing the same thing that the State of Nevada did a few years ago. They are trying to capture new business that is moving out of the State of California and they are busy advertising and marketing their own states to get business owners to move. With business owners having to pay larger income tax, and other regulatory taxes, fees, fines, and permitting monies it hardly makes sense to do business in California anymore.

And, even if a company stays in California or they moved to another state, Obama Care is also coming, this could easily add $4500 a year per employee to the cost of the business. If we truly want to curb unemployment, and get everyone back to work, we certainly aren't doing a very good job of convincing business people, not with these latest maneuvers, and certainly not in California. Indeed I hope you will please consider all this and think on it.

Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net - Have an important subject to discuss, contact Lance Winslow.

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