The Law Of Unintended Consequences

California has just created a black market for tires. They didn’t mean to, but they did.

On Wednesday, Issues & Insights posted an article on the new tire regulations in California.

The article reports:

Which state has the highest retail tire prices in the country? It’s not a data point that anyone, as far as we know, compiles, but artificial intelligence suggests that it’s California. What we can be sure about, though, is that in about three years, California drivers will be paying more for tires than they are today. 

Significantly more. 

It won’t happen because the tire makers and retailers will suddenly raise prices. It will happen because California’s hyperactive government launched yet another new rule last week. Beginning in 2029, all new replacement tires sold in the state will have to be “at least as energy efficient, on average, as tires sold on new vehicles,” according to the California Energy Commission, which bragged that it had “approved the nation’s first replacement tire efficiency standards.”

Supposedly the rule will help consumers pocket extra cash due to the tires’ low rolling resistance. The CEC estimates the savings will reach $1 billion a year in gasoline and electricity costs.

Companies that actually make tires and therefore might know what they are talking about say that the savings are a third-rate tall tale. The new compliant tires will cost far more than the few extra dollars each the CEC reckons. During the rule’s comments period, Goodyear said prices could spike by hundreds of dollars per tire while the rule will eventually eliminate about 70% of current replacement tire market.

The article concludes:

It’s painfully obvious that California will regulate anything, without conscience, without prudence, without remorse, with no regard for the consequences. It’s a single-party state where elected officials and unelected functionaries know no bounds.

There are state lines, though, and Californians will cross them to buy the tires they want and the tires they can afford. Enterprising off-the-books merchants will buy contraband tires in Nevada, Arizona, Oregon and elsewhere and sell them in California outside the normal channels to avoid the regulators.

Who knows, some might feel the rule is the straw that finally breaks their backs and sends them fleeing the state as so many others already have because policymakers continue to make living in California an intolerable burden.

The California legislature is giving residents another reason to leave the state.

Sunlight Is The Best Disinfectant, So Let’s Close The Shades!

On Sunday, The Gateway Pundit posted an article about a California law recently signed by Governor Gavin Newsom.

The article reports:

The formerly great state of took a giant step toward becoming a complete leftist dictatorship with a new law that completely destroys the 1st Amendment.

As The New York Post reported, Governor Gavin Newsom officially signed the “Stop Nick Shirley Act” into law on Saturday. This comes just days after a leftist operative interrupted an interview the independent journalist was conducting at the State Capitol and launched a disgusting and bizarre personal attack against him.

The legislation, which officially takes effect on October 1, 2027, passed the Senate on Tuesday and cleared the state Assembly on Wednesday.

The “Stop Nick Shirley Act” was introduced by Assemblywoman Mia Bonta, who is married to California’s far-left Attorney General, Rob Bonta. AB 2624 claims to expand California’s “Safe at Home” confidentiality program to safeguard “immigration support service providers” from harassment.

But in reality, this is a disgusting power grab designed to silence brave conservative citizen journalists like Shirley who expose the rampant fraud bleeding American taxpayers dry in government-funded immigrant service centers.

For example, Shirley has exposed over $110 million in alleged Somali-run daycare fraud in Minnesota — empty “learning centers” billing taxpayers while no children were present.

He then followed up with a shocking exposé on California daycare and hospice fraud schemes. This included ghost operations in Los Angeles tied to massive looting of Medi-Cal and Medicare.

Nick Shirley has a lot of nerve uncovering Medi-Cal and Medicare fraud in California. This law is specifically designed to stop him for exposing any more fraud.

The article notes:

As previously reported, this fascist law states that anyone who takes photos, records video, or posts information online revealing the faces or locations of workers at these mass-migration, non-profit entities faces catastrophic consequences:

• A minimum $4,000 to $10,000 fine per violation
• Imprisonment and criminal misdemeanor charges
• Forced content takedown orders

I hope Nick Shirley sues California and the case makes its way to the Supreme Court.

The Nanny State Strikes Again

On Tuesday, Fox Business posted an article about new regulations about tire purchases in California.

The article reports:

California regulators on Monday approved new rules that will restrict which replacement tires can be sold across the state in an effort to meet energy-efficiency standards.

The new regulations, unanimously adopted by the California Energy Commission (CEC), will phase out tires that fail to meet these standards — a move that could restrict a large portion of the tires currently available to drivers.

“This ultimately is about protecting consumers,” said David Hochschild, Chairman of the California Energy Commission, as reported by KCRA-TV. “I see this as sheltering the public from higher costs in the long run.”

…The new rules target rolling resistance: the amount of energy it takes for a tire to roll down a road. Lower rolling resistance allows vehicles to consume less gasoline or electricity.

While factory-installed tires on new vehicles typically feature low rolling resistance, drivers often replace them with cheaper, less efficient tires. The new rules aim to ensure that replacement tires maintain energy efficiency levels similar to those of original factory tires.

As long as the tires I put on my car are safe, the state has no business telling me what those tires should be. It would be interesting to check the campaign donations to the people who passed this bill. The tires now required evidently are more expensive than the tires people normally buy. There are also some questions as to the performance of the required tires in inclement weather. What is the profit margin on these tires? What campaign donations have the companies who manufacture these tires recently made? I hate to be cynical, but eighteen years of research for rightwinggranny.com has taught me that regulations often happen for reasons other than those stated.

The Search For Voter Integrity

On Monday, The Federalist posted an article about California’s lack of ability to determine how many noncitizens have been removed from its voting rolls or the lack of a policy to investing illegal voting.

The article reports:

For years, Americans have been told that concerns about noncitizens voting are a myth, a right-wing talking point unworthy of serious attention. California’s own secretary of state and attorney general have proven otherwise, however, not by admitting the state has no idea whether, or how often, it’s even happening, but by indicating the state isn’t bothering to track it.

A few weeks ago, the ACLJ (American Center For Law & Justice) submitted two California Public Records Act (CPRA) requests — one to the California secretary of state and one to Attorney General Rob Bonta’s office — seeking records on how the state maintains the integrity of its voter rolls. The Attorney General’s Office took an extension, ultimately responding on Aug. 10.

The Secretary of State’s Office responded first, but refused to provide any records responsive to our request. According to its answer, the statewide voter registration system simply “does not contain” a specific cancellation reason for non-citizenship. In other words, the state cannot tell us how many noncitizens have ever been removed from its voter rolls — because it doesn’t keep that information at all.

The article concludes:

It’s also worth noting that California doesn’t require proof of citizenship or lawful presence for a certain category of driver’s license, AB 60 — the same kind of licensing pathway that triggered New Jersey’s noncitizen voter roll problem. And driver’s licenses are used to establish identity.

The ACLJ isn’t done here. We’re pressing for the records that California’s DOJ says it’s still reviewing, and depending on what — or what isn’t — in that response, our options range from further legal demands to potential litigation for noncompliance with state and federal recordkeeping laws.

The California Secretary of State’s Office has now told the country that it doesn’t know how many noncitizens have been removed from its voter rolls, and the Attorney General’s Office admitted that it has no formal policy for investigating illegal voting when it’s reported. That’s not a technicality. That’s a transparency failure in need of further investigation.

This is no way to run a state!

Voting With Your Feet

On Monday, The Gateway Pundit posted an article about another major corporation leaving California for Texas.

The article reports:

Hil Davis, the CEO of Digital Brands Group based in California, shared his blunt reasoning for moving his company’s headquarters to Round Rock, Texas. Davis told Fox News Digital, “Doing business in the state of California sucks.”

The Round Rock Chamber announced the move in a press release.

“Founded in California and known for its innovative approach to blending apparel brands with e-commerce technology and data-driven consumer solutions, Digital Brands Group’s relocation marks a significant win for economic development in Round Rock.”

“The company’s move reflects the accelerating trend of growth-oriented companies choosing Texas for its business-friendly environment, skilled workforce, and strategic position in Central Texas.”

“We are thankful to move to Texas, a business-friendly state, from California. We believe the operating environment and cost of business is significantly better, while also creating a higher quality of life and lower cost of living for employees. We are excited to build our corporate headquarters in Round Rock, especially as we move into our next phase of growth,” Davis added.

The article quotes Fox News:

Davis pointed to California’s high cost of living, long employee commutes and the rising cost of doing business, including defending against lawsuits.

“You start to add all those things up,” he said. “It doesn’t work. It doesn’t make sense. It’s too hard.”

The relocation comes as California wrestles with a much bigger question about whether the state’s costs, taxes and regulations are driving away the businesses and wealthy residents it relies on.

That debate has intensified around a proposed one-time tax of up to 5% on Californians worth more than $1 billion.

California has brought this on itself. One of the most beautiful states in the union has created an environment where the cost of living and the cost of doing business have skyrocketed. A business needs to go to where the cost of doing business is reasonable and the cost of living for its employees is reasonable. California currently meets neither of those two requirements. It remains to be seen if the state can change enough politically to avoid the economic disaster that is currently in its future.

Voting With Your Feet

Americans (and corporations and businesses) have the freedom to move where the cost of living or the cost of doing business is favorable to their desired lifestyle or business. That has resulted in a migration from blue states to red states. The most popular destination in that migration seems to be Texas.

On Sunday, Fox News posted an article about that migration.

The article reports:

The race to become America’s next economic heavyweight may already have a frontrunner.

The latest Internal Revenue Service (IRS) migration data show billions of dollars in taxpayer wealth flowing into Texas, while Census figures show the state’s largest metropolitan areas continue to outpace much of the country in population growth, strengthening a decades-long shift in America’s economic center of gravity.

What’s more, Texas isn’t relying on a single boomtown. Dallas-Fort Worth added more residents than any metropolitan area in the country over the past year, while Houston, Austin and San Antonio also ranked among the nation’s fastest-growing metros.

…While Florida attracted the nation’s largest influx of taxpayer wealth and South Carolina posted the strongest inbound migration rate, Texas stood out by combining billions in new taxable income with rapid growth across Dallas-Fort Worth, Houston, Austin and San Antonio.

Economists say that combination matters because higher-income households bring spending, investment, entrepreneurship and tax revenue that can accelerate job creation, fuel commercial development and attract even more businesses. Over time, those forces can transform fast-growing metros into some of the nation’s most influential economic hubs.

The article concludes:

Supporters of Texas’ economic model argue its lack of a state income tax, relatively affordable cost of living and business-friendly climate continue attracting both employers and workers, reinforcing the state’s long-term growth.

California and New York remain among the nation’s largest and most influential economies.

But the latest Census, IRS and federal economic data suggest Texas continues gaining ground by attracting people, taxpayer wealth and economic output simultaneously, an uncommon combination that could reshape where businesses invest, jobs are created, and economic influence grows over the coming decade.

Elections have consequences and economic policies have consequences.

Preventing Fraud Before It Happens

On Wednesday, American Greatness posted an article about the federal government’s efforts to end Medicaid fraud in blue states.

The article reports:

The Trump administration moved Tuesday to withhold more than $1 billion in federal Medicaid dollars from California and Minnesota, the latest step in the campaign to root out fraud and waste in blue-state health programs.

The Centers for Medicare and Medicaid Services (CMS) said it is deferring roughly $867.5 million in payments to California and $199 million to Minnesota after financial reviews turned up claims the agency could not verify, particularly in in-home care programs.

The decision extends a pattern of federal scrutiny aimed squarely at Democrat-led states that critics say have long been lax about policing how taxpayer money moves through their Medicaid systems. Minnesota in particular has already drawn federal attention this year, after the administration pointed to the state’s failure to control fraud as one justification for last year’s ICE enforcement surge there.

CMS said its review of California’s claims was triggered after officials noticed spending growth in certain in-home care programs that outpaced national trends, along with a broader set of claims the agency said simply lacked adequate documentation. In Minnesota, CMS flagged claims across 14 service areas, including payments tied to providers previously identified through the state’s own program integrity reviews, a detail that raises questions about why those payments continued at all.

The article notes that officials have also imposed a six-month moratorium on enrolling new hospice and home health providers into Medicare nationwide, citing those sectors as persistent hotspots for fraudulent billing. These are our tax dollars that are paying for lavish lifestyles for dishonest people. We need to improve our screening process before we give out any more money.

The Battle For Honest Elections

On Saturday, The Conservative Playlist posted an article about a court case involving mail-in ballots.

The article reports:

A federal appeals court has handed the U.S. Postal Service a significant victory in its push to impose stricter controls on mail-in ballots for federal elections, clearing the way for enhanced verification measures that could reshape voting practices in states like California.

The D.C. Circuit Court of Appeals temporarily lifted a lower court block on Friday, allowing USPS to advance its proposed rule requiring states to submit voter registration lists and use serialized barcodes on ballots before federal mail ballots are distributed.

This stems directly from an executive order aimed at bolstering election integrity through citizenship checks and accurate voter rolls. For California, which mails ballots to nearly every active registered voter, the implications are profound.

Critics of the status quo have long pointed to the vulnerabilities inherent in expansive mail-in systems. Delays in counting, questions over signature verification, and incomplete voter data create fertile ground for doubt. California’s own officials acknowledge the logistical challenges of processing millions of ballots in counties larger than many states, yet they have bristled at federal efforts to verify eligibility. The state’s refusal to fully cooperate with voter roll audits only fuels skepticism about whether every ballot cast truly belongs to a lawful voter.

This ruling represents more than procedural maneuvering. It underscores a fundamental tension: the push for convenient voting must not come at the expense of verifiable legitimacy. When ballots flood the system without robust upfront checks, public confidence erodes. Supporters rightly hail the move as a practical step toward restoring trust, especially after years of contested results and allegations that have left millions questioning outcomes.

The article concludes:

Accountability matters in every sphere, including the sacred duty of stewarding a republic. Accurate records and transparent processes align with the moral order of truth and justice. California and similarly situated states would do well to embrace these changes rather than litigate against them. The American people deserve elections beyond reproach—not just convenient ones.

This development offers hope that federalism and integrity can coexist, even as entrenched interests dig in. The fight for trustworthy elections continues, but a key barrier has been cleared.

The battle for honest elections is ongoing and multi-level. It would be wonderful to have Congress pass the SAVE Act, but there are many other things we can do at various government levels to secure our elections.

This Is How The Story Always Goes

On Friday, Zero Hedge posted an article about a recent statement by Representative Ro Khanna (D-CA).

The article reports:

Rep. Ro Khanna (D-CA) – fresh off endorsing California’s November ballot measure to seize 5% of billionaire wealth – published a Substack essay Wednesday titled, no really, “Why I Support a Billionaire Wealth Tax.”

He makes it roughly a dozen paragraphs before explaining that it isn’t one.

“The tax should not stop at billionaires, it must reach centimillionaires,” Khanna writes, before spelling out exactly what that means: every fortune of $50 million and up, hit with a 2% federal levy on wealth above that line – every year, forever, on top of everything else you already pay. The vehicle is Elizabeth Warren’s Ultra-Millionaire Tax Act, which Khanna notes he has cosponsored every single year it’s been introduced.

And before anyone reaches for the estate planner: Khanna wants the levy to pierce irrevocable trusts, with the tax billed to the grantor who set them up – because parking a fortune in a trust, in his telling, shouldn’t take it off the government’s books.

Former Microsoft executive Steven Sinofsky summed up the reveal in eight words: “Just like that, no longer a billionaires tax.”

The article provides some insight into the recent history of wealth taxes:

The measure headed to California voters in November is a one-time 5% tax on the state’s roughly 250 billionaires. Newsom, opposing it, countered on June 26 with a national “billionaires’ tax” – which, in its original form, applied to anyone worth $100 million or more, language that was quietly scrubbed after multiple outlets quoted it as we reported. Six days later, Khanna planted the flag at $50 million.

None of this is exactly new, of course. The Warren bill has carried the $50 million line since she rolled it out in 2019, and Biden’s 2022 “Billionaire Minimum Income Tax” kicked in at $100 million households. The branding always says billionaire, but the fine print ios a slippery slope.

Then there’s inflation… The bill’s $50 million threshold is a flat statutory number that hasn’t moved since 2019 – meaning inflation has already quietly cut the real threshold by more than a fifth. The creep shows up in the sponsors’ own math: when the bill debuted, backers said it touched the top 0.05% of American households; the 2026 reintroduction, per the same Saez-Zucman analysis the sponsors tout, now reaches 260,000 households – the top 0.15%. Same words, triple the coverage, five years. Asset inflation does the broadening automatically. Congress just has to sit still.

When the Income Tax began in 1913, it was only supposed to apply to the top 1 or 2 percent of the wealthiest Americans. We see how that worked out.

Shouldn’t Every State Be Required To Pass An Audit?

On Sunday, The Daily Signal posted an article about an audit of states that was done to verify billions of dollars in unemployment spending, Medicaid payments, and pension obligations in federally-funded programs. Needless to say, some states had problematic results.

The article reports:

The findings in the 2026 Financial Transparency Score report, released by the government watchdog Truth in Accounting, found that 13 states failed to earn clean audit opinions. The report comes as the Trump administration is cracking down on how states are spending federal dollars.

The organization used data from annual comprehensive financial reports, or ACFRs, produced by each state as a requirement for getting federal funding.

The biggest culprits of the unlucky 13 states, according to the analysis, were Delaware and Georgia, as auditors were unable to obtain enough evidence to issue an opinion at all. This is a “disclaimer” in audit terms.

…Arizona’s audit identified one of the more striking problems cited by the Truth in Accounting report.

“Arizona was unable to substantiate much of its financial statements, including a discrepancy of $231.1 million between the Arizona Department of Economic Security’s cash balance and its bank records,” the report says, citing the state’s 2023 ACFR.

…California’s most recent ACFR, which reviewed the state’s finances for 2024, found the state had to correct $1.4 billion in prior-year accounting errors, a previously unreported $950 million in loans, and a $196.5 billion unrestricted deficit driven by pension and retiree obligations. It further had to note that the state’s Medicaid system helped create an $11.8 billion budget shortfall.

The 2025 state budget act partially addressed the Medicaid shortfall; one measure included an enrollment freeze, H.D. Palmer, spokesman for the California Department of Finance, told the Daily Signal.  

Palmer added that the administration directed the Labor and Workforce Development Agency to assess potential concepts to pay down the outstanding unemployment insurance loan balance. Regarding the $196.5 billion in unrestricted debt, Palmer said it is mostly for pensions. 

…In Alaska, auditors reported that the state’s Medicaid payment-processing system relies on outside contractors. However, it says the state failed to obtain independent assurance that the contractors’ financial controls were functioning effectively during fiscal year 2024.

You get the picture. Please follow the link to the article to get the rest of the list.

About Term Limits

On the surface, term limits seems like a good idea to break up the bureaucracy the inhabits the Washington swamp. However, when you look more closely at term limits, they are not really a viable solution.

On Wednesday, American Greatness posted an article about term limits.

The article reports:

Attempts to restructure government at the federal level are mostly on the Democrat agenda. Pack the US Supreme Court. Elect presidents via popular vote. Turn Puerto Rico and Washington, DC, into states with two senators each. Implement national mail-in voting, automatic voter registration, legalize ballot harvesting, lower the voting age to 16, let felons vote, let noncitizens vote. And, of course, end the Senate filibuster. If they could, Democrats would do all of this.

Meanwhile, however, there is a growing bipartisan movement to implement term limits for members of the House and Senate. A bill has been introduced in the 119th Congress, and President Trump has supported term limits consistently since he first ran for president in 2016. But federal term limits would do more harm than good. Explaining why offers insights into how an entrenched bureaucracy gains power in democracies, and California is a prime example.

Term limits came to California back in 1990 via a ballot initiative, because it was the only way the state’s Republicans, still relatively influential, could get rid of Willie Brown. For decades, Assembly Speaker Brown controlled everything that happened in the state legislature. If Brown didn’t support your bill, your bill was dead. As a 25-year veteran member of the Assembly, Brown virtually ruled Sacramento by 1990. Every piece of legislation required his imprimatur. And every aspiring Democrat, including Brown’s protégé Kamala Harris, went through Brown on their way to prominence in state politics.

The consequences have been enormous. Brown may not have been a Republican favorite, but he got things done. By virtue of his many years in the Capitol, Brown knew how every lever of power worked, and he knew every bureaucrat, every union official, and every lobbyist. He was a perennial player; he knew the game backwards and forwards, and when something had to happen in California, Brown was there to make it happen. Say what you will about his politics or his party; back then, California had a government that worked.

The article concludes:

Imagine what Washington, DC, already gripped by a deep-state bureaucracy, would be like if elected politicians were termed out of office right about the point where they’d acquired enough experience to navigate this swamp. Whatever oversight is still possible, whatever reforms and restructurings that might be in the interests of the American people would no longer have advocates who had mastered the details and could exercise long-term leadership. Of course, many members of Congress become swamp rats, entrenched, bought, manipulated, and indifferent to their constituents. But our obligation as citizens is to expose them and ensure that they lose the next election. If they’re such a problem, we must find a candidate to oppose them who can earn a majority of the votes in their district. That’s how you term-limit a bad politician. You beat them in an election.

When you eliminate the bad politicians, you also eliminate the good ones. You turn the machinery of government over to people who have spent decades learning how to control elected politicians, many of whom come into Congress without any previous experience in government. It is easy to disparage all politicians and, therefore, wish to control them by sticking a revolving door into the system and pushing everyone in and out after 12 years. But be careful what you wish for.

If you term limit the elected officials and leave the bureaucrats, you will have a swamp run by bureaucrats. The real solution is for more Americans to get involved in primary elections and give us better candidates to vote for.

Winning At Track Is Easy When You Are A Guy Competing Against Girls

On Saturday, Fox News reported the following:

 A California postseason track meet on Saturday opened with a “Save Girls’ Sports” rally outside the gates and ended in familiar fashion, as one athlete again separated from the field in the jumping events, highlighting growing concerns over competitive fairness in girls’ sports.

Saturday’s CIF Southern Section Division 3 preliminaries in Yorba Linda drew attention before competition began, with demonstrators protesting California’s policy allowing transgender athletes to compete in girls’ sports.

Inside, the focus turned to the jumping events, where biological male AB Hernandez, a senior from Jurupa Valley, competed against women and finished first across all three competitions with dominant performances.

First, let’s get our terms right–he is NOT a biological male–he is a male. His gender was NOT assigned at birth–when he arrived in this world, his parts determined his gender. Without major surgery, there is no way to change those parts.

The article concludes:

Hernandez competed under rules California has allowed for more than a decade. Those rules remain at the center of a growing conflict between state officials and federal leaders over Title IX and women’s sports. That battle has now moved into the courts, with the Department of Justice suing California over its transgender athlete policies.

In response, Gov. Gavin Newsom’s office distanced the governor from the lawsuit, emphasizing he was not personally named while defending the state’s existing law.

Saturday’s prelims in Yorba Linda added more data to the growing push to keep biological males out of girls’ events.

The protest set the tone early, and by day’s end the argument had moved off the sidewalk and onto the results board, where the outcome carried real consequences.

In the long jump, Hernandez was able to jump a foot more than his female competitors. I wonder how he would have done against male competition. Female sports is not the place for mediocre male athletes.

How Do You Put A Hospice In A Taco Stand?

How do you put a hospice in a taco stand or a tire store? That is the question being asked in a post by The Daily Signal on Sunday. Evidently the authorities in California were so lax in checking Medicare money handed out to supposed hospice facilities that some of them were located in very strange places.

The article reports:

The Centers for Medicare and Medicaid Services has halted payments to more than 400 hospices in Los Angeles and across California, with the estimated fraud being greater than $600 million, according to the anti-fraud task forceopens in a new tab led by Vice President JD Vance. 

Sheila Clark, CEO of the California Hospice and Palliative Care Association, is questioning how these alleged instances of fraud have slipped through the cracks.

“How do you put a hospice in a burrito stand in California? How do you put a hospice in a tire store? That all had to be vetted through licensure, certification, and accreditation,” Clark said during a House of Representatives hearing on April 21.

The article concludes:

In an interview with Fox Newsopens in a new tab, First Assistant U.S. Attorney for the Central District of California Bill Essayli called California “the kingdom of fraud.”

“Nobody is minding the shop. The money just goes out the door—no checking, no vetting. California has a responsibility to make sure the money is going to the intended recipients.”

On Tuesday, Health and Human Services Secretary Robert F. Kennedy Jr. reported that $6,000 was being paid out by the government for hospice patients that allegedly did not exist.

We have not gotten one call from a congressperson or a patient. Why? Because those hospices did not exist. They were signing up patients … and charging us $6,000 a month for that patient.” 

I am hoping that as we clear out the fraudulent spending by the government we can continue to decrease the tax burden on Americans.

The Laffer Curve At Work

This is the Laffer Curve:

The Laffer Curve is being illustrated in America as blue states increase their taxes, their population leaves, and red states who are reducing their taxes are gaining population.

On Wednesday, Red State reported:

Blue states are pushing new taxes on high earners as billions in income and thousands of taxpayers move to red states.

In California, New York, Washington, and Michigan, lawmakers are advancing proposals and ballot efforts aimed at top earners. Washington is advancing a tax on income over $1 million, while California is pushing a tax on billionaire net worth. Other states are weighing similar plans, including taxes on residents who leave and widening the scope of income taxation.

IRS migration data from 2022-2023 shows California lost nearly $12 billion in taxable income in a single year, while New York lost $9.9 billion. Florida gained $20.5 billion, and Texas gained $5.5 billion as taxpayers moved and took their income with them.

California lost roughly 230,000 residents over the same period, while lower-tax states gained both population and income at the same time.

New York Gov. Kathy Hochul (D) acknowledged the shift, as RedState previously reported:

“Maybe the first step should be go down to Palm Beach and see who you can bring back home because our tax base has been eroded.”

These proposals assume high earners will stay and absorb higher rates. The migration data shows otherwise.

JPMorgan Chase CEO Jamie Dimon has warned about New York’s tax structure:

“New York City has much going for it… but it also has the highest city and state corporate taxes and the highest individual income taxes.” 

Business leaders have been warning about this shift for years, pointing to rising costs, regulatory pressure, and tax burdens that make long-term investment harder to justify in high-tax states compared to lower-cost alternatives, especially as relocation becomes easier for both individuals and corporations.

The article concludes:

Those taxpayers contribute more than income tax revenue. They invest, build companies, hire workers, and drive the economic activity that state budgets depend on. When they leave, the loss does not stay at the top. It spreads across the tax base.

That creates another problem. Budgets built around a shrinking group become harder to sustain, yet the response has often been to raise rates further or expand who gets taxed as the base narrows.

Higher rates aren’t capturing that revenue. They’re driving it out.

A smart businessman will operate his business in the place with the lowest overhead. Taxes are part of that overhead. Businessmen do not become successful by being stupid.

Good News For Taxpayers And Pro-Life Americans

On Friday, Townhall posted an article about the legal challenges by Planned Parenthood to the ban on taxpayer money being used to fund abortion.

The article reports:

When President Trump signed the “Big Beautiful Bill” on July 4, 2025, cutting off federal Medicaid reimbursements to large abortion providers under Section 71113, the abortion industry immediately launched a coordinated, multi-front legal assault to force the money to keep flowing. The ACLJ jumped into the fight on Day One – and never looked back.

…Planned Parenthood filed suit in the Massachusetts federal district court within days of the bill’s passage. When the district judge granted two sweeping preliminary injunctions – claiming the defunding violated Planned Parenthood’s First Amendment rights – we filed four amicus briefs fighting back, including urging the First Circuit to issue an emergency stay. The First Circuit granted the stay on September 11, cutting off Planned Parenthood’s funding while the case proceeded – and later issued a unanimous landmark ruling upholding Section 71113 in its entirety and vacating both injunctions. Win.

Maine Family Planning opened a second legal front in Maine federal district court. We filed amicus briefs there at both the district and appellate levels arguing that no court can force Congress to spend money it specifically voted not to spend. The district court denied their injunction entirely, and after the First Circuit’s decisive ruling in the Planned Parenthood case, Maine Family Planning abandoned its appeal altogether and stipulated to dismissal. Win.

Even as those cases were resolved, California organized a coalition of 22 states to file their own lawsuit – California et al. v. HHS – seeking to reimpose Planned Parenthood funding across their jurisdictions. We filed our seventh amicus brief there, and the First Circuit handed California a decisive defeat, granting a stay that allowed Section 71113 to take effect even in the plaintiff states. With no viable legal theory remaining, the coalition has now dismissed its own case, seeing the writing on the wall. Win.

The article concludes:

As monumental as today’s victory is, Section 71113 of the “Big Beautiful Bill” cuts off Planned Parenthood’s Medicaid funding for one year. The abortion lobby will regroup. The only way to make this permanent is through Congress. The ACLJ will be at the forefront of that fight, just as we have been at every stage of this one.

I don’t know if we will ever be able to end legal abortion, but at least we can stop the taxpayers being forced to pay for it.

When Charity Funds Go Missing

Dolly Parton is known for starting a literacy program for children. She began her Imagination Library, a book gifting program that mails high-quality, free books to more than 3 million children around the world each month, in 1995. 

On Saturday, Breitbart reported: 

California’s top librarian is accused of failing to produce $650,000 in missing funds linked to a literacy program started by country music star Dolly Parton in east Tennessee in 1995.

State legislators recently pelted Greg Lucas, the leader of the California State Library, with questions about the funds during a budget hearing on education, the New York Post reported on Friday.

…During the hearing, state Sen. Shannon Grove (R) told Lucas he did not have documentation to show where the money went.

She then asked point blank, “Where’s the money?”

Lucas was appointed to lead the state library in 2014 by former Gov. Jerry Brown, ABC 10 reported.

The article concludes:

Legislation for a statewide version of the program through the state library was signed into law in 2022 with the approval of over $68 million in state funding for the books. The Post noted that “Lawmakers allowed up to 10% — about $6.8 million — for administrative costs and set a goal of enrolling roughly 65% of eligible California children within five years.”

However, when the program stalled for a couple of years the state library entered a $19.2 million contract in late 2024 with Strong Reader Partnership, a nonprofit group that was closed down in September. It received over $4.8 million from the state with $4 million shifted to a money market account.

The nonprofit said it spent about $1.2 million but bank statements reportedly showed over $500,000 in expenses. Now, lawmakers claim nearly $650,000 is missing and Lucas has said he will get answers for officials.

In regard to the lack of documentation, Grove told Lucas in a budget meeting, “You don’t have receipts requested six times. You don’t have bank statements requested six times from this committee. … That makes no sense, and that reeks of horrific no transparency and potential fraud.”

This could simply be a case of missing receipts, but unfortunately, California does not have a great record in preventing fraud in government programs.

Voting With Your Feet

On Saturday, The New York Post posted an article about Uber co-founder Travis Kalanick. He has announced that he is leaving California for Texas.

Our Founding Fathers envisioned a nation where each state would be an individual laboratory to find the best ways to do things–provide services, create budgets, levy taxes, etc. The idea was that the unsuccessful states would learn from the successful states. Unfortunately, some of our less successful states seem to have a very slow learning curve and rather than learn from what is successful are doubling down on what doesn’t work. California, a beautiful state with beautiful beaches, and beautiful weather is one example of that slow learning curve. The state’s tax plans are driving successful people out of the state.

The article reports:

Uber co-founder Travis Kalanick says he has traded California for Texas, joining a growing list of billionaires abandoning the state as lefty lawmakers push for a one-off tax on their wealth.

Appearing on TPBN to discuss his robotics startup Atoms, Kalanick told hosts John Coogan and Jordi Hays he relocated to Austin at the end of 2025.

“Just to be clear, on December 18, I moved to Texas. I don’t know what’s so specific about December 18, but let’s just say it’s prior to January,” said Kalanick, pointedly.

That means the 49-year-old’s estimated $3.6 billion fortune will not be subjected to the tax should it be introduced.

Kalanick joked he felt a twinge of FOMO when he hears about other wealthy Americans relocating to Florida.

“Why so much Florida action?! Like, come on homies,” he said.

Those ”homies” would be billionaire tech figures to leave California for Florida., including Google founders Larry Page and Sergey Brin, PayPal and Palantir investor Peter Thiel, Amazon founder Jeff Bezos and Meta chief Mark Zuckerberg.

The article notes:

While California still boasts the largest billionaire population in the United States, an increasing number have relocated to places such as Reno, Austin and Miami.

As long as people are free to move around the country, they will gravitate to the states with lower taxes and a lower cost of living. Businesses and corporations will also move to states with a better business climate. Note that Cape Cod Potato Chips are being moved out of Massachusetts.

Policies Have Consequences

On Monday, The Western Journal posted an article about gasoline prices in California.

The article reports:

California is having to rely on gasoline shipped in from the Bahamas as more refineries close in the state due to its strict environmental policies.

And the restricted in-state refining capacity is causing gas prices to surge.

The current average for regular gasoline is $4.59, up from $4.21 last month, according to the American Automobile Association.

The New York Post reported, “Valero’s Benicia refinery — a key Northern California supplier — is in the process of sunsetting operations. The move follows other major pullbacks, including the closure of Phillips 66’s Los Angeles refinery, steadily reducing California’s ability to produce its own gasoline, and driving up costs at the pump.”

“California sucked in more gasoline imports last November than at any point in its history — and a staggering 40%-plus of it came from the Bahamas — all that means more cost at the pump for drivers,” the news outlet added.

Cal Matters reported in September that in 1982, California, which has rich oil reserves, imported about 6 percent of its needs from foreign sources. As of last fall, the percentage had climbed to 64 percent.

The article concludes:

Michael Mische, an associate professor at the University of Southern California’s Marshall School of Business, wrote in the Cal Matters piece that “the Legislature should consider the repeal of regulations limiting production and pipeline use in more counties, assess the powers of agency bureaucrats who force higher prices on the backs of Californians, and a new regulatory strategy that will provide a more hospitable business environment for refiners and producers.”

Businesses are already leaving California. If the state continues in its current direction, more businesses and more people will leave. Our Founding Fathers envisioned a country where each state would act as a laboratory for policy. The states that created successful policies would have those policies copied by other states so that every state would be successful. Unfortunately, politics has become so toxic that successful policies from red states are not being copied in blue states simply because they are from red states. I believe we will see California go bankrupt in the near future.

Who Votes In America’s Elections?

On Monday, Red State posted an article about some voting irregularities in California.

The article reports:

Over the weekend a video clip posted by RNC Research of the Sheriff of San Joaquin County saying, “You’re able to register and cast a vote if you don’t live in the country,” and stating that a Pakistani citizen voted in a California election went viral.

Many social media users were wondering if this actually happened and if what he said about the “honor system” of registering to vote online in California is correct; yes, it did, and yes, he’s correct. Shakir Khan, a Pakistani immigrant and now-former city councilman from Lodi, California, was arrested in February, 2023 and charged with 14 felonies related to election fraud. RedState covered the news at that time; the original story can be viewed here. Khan pleaded no contest to those charges in January 2024, but recently made a motion to have that plea set aside and is petitioning the court for mental health diversion.

The article details the story:

  • During a raid of Khan’s home in October 2020 on unrelated charges, officials observed a stash of 41 sealed and completed mail ballots for the 2020 presidential election. Due to CA’s ballot harvesting laws the ballots were not seized, but investigators photographed the ballots and documented their findings.
  • In the fall of 2021, officials noticed 70 people were registered to vote at one address in Lodi, which they recognized as Khan’s.
  • Sheriff’s investigators determined that Khan had used the state’s online voter registration system to re-register existing California voters from other districts to his address, and at least a few non-citizens living in foreign countries (including his brother in Pakistan) to vote using his address, email address, or phone number.
  • Investigators reviewed the ballot return envelopes from ballots cast in the 2020 general election, which had been maintained by the Registrar, and found that many of those tied to Khan’s address all had the same handwriting on the outside.
  • In October 2022, officials found more than a dozen unopened ballots for the mid-term election, none of them addressed to Khan and many not sent to his address, at his home.
  • Officials also found Khan’s nomination form for his city council candidacy, and determined that numerous signatures on it were forged.
  • Khan forced voters whose information he’d hijacked to vote for him and for Joe Biden, either by filling them out himself or threatening the voter.
  • When Khan heard that investigators were speaking to people he’d fraudulently registered to vote, he posted a video to TikTok to threaten and intimidate them.

The article notes:

While both the San Joaquin County Sheriff and the Registrar stated that there were potential federal election laws broken by Mr. Khan, the Biden Department of Justice was completely uninterested in pursuing any charges. And California’s Department of Justice, led by scandal-ridden Attorney General Rob Bonta, has been more focused on preventing Huntington Beach from enacting a voter ID requirement than ensuring that this immigrant population receive justice after being threatened by this thug.

This is the reason we need the SAVE Act!

Migration Within America

As I stated in another article posted today, one of the reasons for the Democrat party’s wanting to keep illegal aliens here is that they see them as future voters. As Americans are becoming disillusioned with the radical shift of the Democrat party, the party needs a new voting base.

On Tuesday, a website called ResiClub posted an article detailing some of the recent shifts in population within America.

The article reports:

The article includes the following map:

The article concludes:

Looking ahead, Texas and Florida will continue to be among the top destinations for domestic movers. They’re simply moving through a softer window right now, in part because of the migration pull-forward that occurred in 2021–2022 (many of those households likely would have moved in 2023–2025 anyway), and because switching costs remain exceptionally high in the current housing cycle. For example, some homeowners in states like Illinois who might have otherwise sold in 2023-2026 and relocated to Florida are staying put, as taking on a materially higher mortgage rate/monthly payment is simply too difficult to justify right now. That churn will slowly unlock overtime.

People are looking for warmth, but they are also looking for lower taxes and a lower cost of living. Businesses are looking for lower taxes and less regulation. Elections have consequences, and if the blue states continue in the direction they are currently going, they are going to lose significant population.

Not Even Remotely Surprising

California has increased taxes many times to try to balance its budget. If the people who live there are willing to put up with that, that’s fine. However, trying to collect taxes from people who no longer live there is questionable at best.

On Monday, Just The News reported:

According to documents posted online by a family who formerly lived in California, the Golden State is trying to collect income taxes years after the family moved to Florida.

The documents, sent on Jan. 6, 2026, asked for receipts, invoices, canceled checks and other documentation showing that the family moved from California to Florida nearly four years ago. The California Franchise Tax Board, which sent the letter, also asked the family for a “narrative of the circumstances” surrounding the family’s move out of state.

Hari Raghavan, who with his wife, Mitali Gala, was the subject of the investigation by the California Franchise Tax Board, said he and Gala moved from California to Florida in 2021. They tried to sell the home they owned in California when they moved, but weren’t able to do so immediately, Raghavan told The Center Square.

“That spilled into 2022, but it was by no definition a primary residence anymore,” Raghavan said about the California home. “We moved to Florida to establish residency in 2021.”

New Jersey actually does have an Exit Tax. For example, if you sell a house in New Jersey for $800,000 (that you bought years ago for $200,000), you could owe as much as $15,000 in Exit Tax. I think this is taxation without representation, but as far as I know, it  has not been challenged in court.

The article at Just The News notes:

In an emailed statement to The Center Square, the Franchise Tax Board said individual tax records are confidential and information about one individual or family’s tax records can’t be shared. Investigations that determine if someone owes taxes can be lengthy, officials said.

“FTB’s audit program serves as the compliance mechanism for administering California’s tax code,” Andrew LePage, an official with the Franchise Tax Board, wrote to The Center Square via email. “A residency audit determines if an individual is a resident, non-resident, or part-year resident for tax purposes. Residency audits take about 18 – 24 months to complete, depending on a wide range of variables.”

Those who live in and receive income in California for at least nine months out of the year owe personal income taxes to the state, LePage told The Center Square via email. Officials also told The Center Square that the board doesn’t share its criteria for when to conduct a residency audit.

Officials with the Franchise Tax Board would not make anyone from the agency available for an interview with The Center Square.

Moving forward, Raghavan and Gala are assembling a response with their accountant, Raghavan said.

While he believes in everyone paying their fair share of taxes, he’s found much of the experience with the agency off-putting, Raghavan told The Center Square.

“My issue is with how they go about it,” Raghavan said. “I can’t truly say they have been unreasonable with us, with one exception. I can’t believe they would ask someone for their moving inventory list. Who maintains that?”

It is easy to understand why people are leaving some of our blue states.

Voting With Your Feet

On January 12, Issues & Insights posted an article about the reaction to a proposed California tax on billionaires. It should not be a surprise that billionaires do not want to pay this tax.

The article reports:

The Billionaire Tax Act isn’t even officially on the California ballot yet, but that hasn’t stopped businessmen, entrepreneurs, and investors from fleeing the state, taking $1 trillion in wealth – along with jobs and opportunity – with them.

Tech entrepreneur Chamath Palihapitiya has been keeping track of who’s decided to leave the state in advance of this “temporary” tax.

“We had $2T of billionaire wealth just a few weeks ago. Now, 50% of that wealth has left – taking their income tax revenue, sales tax revenue, real estate tax revenue, and all their staffs (and their salaries and income taxes) with them,” he posted on X this weekend.

“In other words, by starting this ill-conceived attempt at an asset tax, the California budget deficit will explode. And we still don’t know if the tax will even make the ballot.”

Among those who’ve given up on California are Google co-founders Sergey Brin and Larry Page. The New York Times reports that 10 days before Christmas, Brin “terminated or moved 15 California limited liability companies that oversee some of his business interests and investments out of the state” and “more than 45 California limited liability companies associated with Mr. Page filed documents last month to either become inactive or move out of the state.”

The Laffer Curve is an illustration of what is happening  in California:

Millionaires and billionaires have tax accountants, lawyers, and other people who help them legally avoid many of the taxes the rest of us pay. Voting with your feet is one of the easiest ways to avoid excessive taxes. Voting with your feet is one of the reasons Texas and Florida are the fastest growing states in the nation. Their tax policies make them very attractive to businessmen.

The article concludes:

This is a state, after all, that has managed in the past few years to kill its other golden goose, the film industry – the Wall Street Journal last fall said  “L.A.’s Entertainment Economy Is Looking Like a Disaster Movie.”

It’s a state that sits at the top of the list for highest tax rates, but the bottom of the list for just about everything else. (See “Do Californians Realize How Badly They’re Getting Ripped Off?”)

It’s a state that – despite idyllic weather and natural beauty – has driven more than 1.6 million residents away. (See “The Great Divorce Continues.”)

As we noted in this space a couple of weeks ago (See “California’s ‘Get Out Now’ Tax”), “Businesses and people are fleeing because lawmakers and blue voters are stuck in a Bolshevik rut.”

The question is, what will it take to get California’s lawmakers and voters unstuck?

Arresting People Who Broke The Law

America’s justice system has softened in many areas in recent years. That has resulted in people being released from jail who have no business being out on the streets. However, the U.S. Immigration and Customs Enforcement’s (ICE) continues to do its job to keep Americans safe.

On Monday, Breitbart reported:

Immigration and Customs Enforcement (ICE) has arrested 118 illegal aliens in San Luis Obispo County and Santa Barbara County in California, a sanctuary state. Several of the illegal aliens are registered sex offenders, drunk drivers, or pedophiles, among other crimes.

“ICE ended 2025 with a surge operation in California targeting the worst of the worst criminal illegal aliens,” the Department of Homeland Security’s (DHS) Tricia McLaughlin told Breitbart News. “One hundred and eighteen illegal aliens were arrested, including pedophiles, registered sex offenders, burglars, domestic abusers, and serial drunk drivers.”

The ICE operation took place from December 26 – 31, 2025, and saw the likes of Juan Perez Tello and Rogelio Sanchez Hidalgo arrested, among others.

Tello, a 42-year-old illegal alien from Mexico, has been convicted of lewd or lascivious acts with a child under 14 years old and is a registered sex offender.

Hidalgo, a 41-year-old illegal alien from Mexico, has been convicted of lewd or lascivious acts with a child under 14 years old, is a registered sex offender, and has been convicted of illegal re-entry.

The article concludes:

McLaughlin said illegal aliens “flock to California because they know Governor Newsom and his fellow sanctuary politicians will allow them to terrorize innocent American families.”

“In 2026, our law enforcement will continue to do what Gavin Newsom has refused to do: make California safe again,” McLaughlin said.

Our immigration procedures need to change. We need to make it easier and less expensive for people who want to come here and assimilate to immigrate. We also need to set up some sort of sponsorship program that involves individuals–not NGO’s. Americans are a generous people, and I think many of us would be willing to help resettle an immigrant into America if the immigrant planned to assimilate and be an asset to their community.

Policies Have Consequences

Our Founding Fathers envisioned each state as a laboratory. If a program or policy worked in one state, it would soon be adopted in other states. If it didn’t work, the policy would be dropped. We seem to have forgotten that principle, but businesses are using that idea to decide where to do business.

On Wednesday, Breitbart reported:

Marcus Lemonis, the CEO of Bed, Bath & Beyond, announced on X on Wednesday that his company would no longer open stores in California because the state made it “nearly impossible” for business to succeed.

Remember, Gavin Newsom, the Governor of California, wants to be President so that he can inflict his policies on the entire country.

Marcus Lemonis posted the following on X:

The article concludes:

Lemonis’s statement is the latest pushback by industry against California, which Gov. Gavin Newsom boasts is the world’s fourth-largest economy, but which also currently has the nation’s highest unemployment rate.

The goal of a business is to provide a product or service and to make a profit. If making a profit is not possible in one place, the business will move to another. This might explain why California is losing population and Texas is gaining population. California is a beautiful state with a wonderful climate, but its tax and economic policies make it an undesirable place to live for many Americans.

Working Toward Election Integrity

Anyone who remembers the 1960 presidential election between John Kennedy and Richard Nixon understands that Illinois (particularly Chicago) might have a problem with voter integrity. The question becomes what to do about it. Some other states have similar problems. Oddly enough, the answer may lie in the courts.

On Monday, PJ Media reported:

Federal courts have allowed two lawsuits to proceed against California and Illinois to force them to clean up their voter rolls.

Democrats have been engaging in election fraud for well over a century and a half, but I don’t think any of us understood the extent of the election integrity problem in our day until the last few election cycles. One aspect of potential fraud is the presence of ‘dirty names’ on voter rolls—individuals who are not legally allowed to be there, whether because they are illegal aliens, deceased, or disqualified for other reasons. Those are the names Judicial Watch and two other organizations are suing to remove in two deep blue states.

“The voter rolls in Illinois and California are a mess and these court decisions allow our Judicial Watch legal team to proceed in court to clean them up,” Judicial Watch President Tom Fitton stated in a press release. “The stakes are high—as there are potentially millions of ineligible names on the voter rolls in these two states.”

The article concludes:

Both lawsuits can now move forward thanks to the rulings from last week.

This is a good beginning.