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California Vital Issues Archive

Letter to Governor Brown

January, 2011

Dear Governor Brown,

My name is Malcolm C. Lunn, President of United Small Business of California. We are a small business organization with an underlying membership of approximately 5000 members.

As you know, Gov. Brown, California was once the engine of American growth and opportunity, but in the last 30 years we have steadily shed businesses, jobs and people. Our state has the daunting task of filling a $28 billion budget hole over the next 18 months. We, along with New York and Illinois, are unfortunately considered the perfect dysfunctional models of "the modern welfare/regulatory state." And Sacramento, dominated by the politicized troika of environmentalists, trial lawyers and government employee unions who once again got you elected, will continue to push an agenda of strict regulations and income redistribution.

I have enclosed information derived from the annual 2011 national survey by the Tax Foundation, which shows California’s dismal business tax climate overall and by various tax categories.
California- Overall- 49th
Corporate tax- 33rd
Individual income tax- 48th
Sales Tax – 49th
Property Tax – 16th (lower due to Proposition 13)
Unemployment Insurance – 14th

And the recent Home Foreclosure Survey lists California at #1 in home foreclosures.

We, at United Small Business, will take this information to the voting public, and we demand that you use this information to subdue your liberal allies, remorseless and unrepentant, who still dominate the legislature. They are going to demand more tax increases and expect you to try to sell the time-worn canard to the voters that only a TEMPORARY sales tax and state income tax hike will avoid a financial meltdown of epic proportions with subsequent cuts in schools, parks and public safety funding.

With our state government’s propensity for imposing taxes as an answer to shortfalls, our state has been in economic Hades for years. Deficits follow deficits, and, I repeat, our 2 year budget shortfall is now over $28 billion. We have also accumulated IOU'S of over $85 billion. The trick plays have been exhausted and Washington, D. C. and the American taxpayer is not going to bail us out of this mess.

You made the choice, Governor Brown, after the wake of Proposition 13 (which, I must commend you, -you made a valiant effort to defeat), to not insist that local governments readjust to their new fiscal realities. Proposition 13 demanded that local property taxes be cut by the equivalent of 22% of local spending by schools, cities, and counties. Your choice softened their harsh reality by bailing out local governments from state coffers.

The results are in, Governor, that decision enabled the local governments to reap a fiscal harvest—instead of cutting spending and reducing services, local governments increased spending and expanded services! Compared to other states, California's local governments spend more than average, despite local revenues being much lower than the national average. The state has been making up the difference. We, at United Small Business, say this HAS TO END!

Governor, there is a battle raging between the revenue generators (business) and the city, county, and state employee unions who keep demanding "more, please." In addition, illegal aliens (cost to state $22 billion a year) feel entitled to the benefits of US citizenship, including unfunded health, education and municipal services. We firmly believe, Governor, that right now our state is ungovernable. Our system is broken at inadequate requisite levels. The state government, we feel, no longer serves the people of California--the purpose of state government now focuses upon "WEALTH REDISTRIBUTION". After 50 years of steady indoctrination by California's media and education establishment, socialism has found a home with the Legislature and the Unions.

We leave you with this quote "The trouble with socialism is that it always runs out of other people’s money". We thank you for taking the time to read our letter, and next month we shall send you our "California's Contract With Business."


Malcolm Lunn
United Small Business of California

United Small Business
Proclaiming Liberty to America's Small Business
P O Box 3132 St. Charles, IL 60174 - unitedsmallbus1@comcast.net
Phone 877-791-7705 Fax 630-475-3844


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