The LAO Weighs In On McCauley's, Most Recent, Fiasco.

The Legislative Analyst's Office shares my concerns over the Federal problems that Paul McCauley's initiative may create.

Click HERE for the report from the LAO, pay particular attention to page 3.

Paul McCauley Answers.

Paul McCauley answered my latest article (below) regarding his efforts to beat up retirees, this time ALL retirees from the State Of California, not just CalPERS retirees. The email is posted below, with my response to his email below his.

================
pmcca28169@aol.com (Paul McCauley) wrote:
> Hey Amigo,
>
> The proposed tax on out-of-staters is an excise tax, not an income tax. Jesus, man, don't you know the difference? The purpose of the proposed excise tax is to capture you prison guards who try to hang up your shackles at age 47, start collecting a pension then sneak out of the state to avoid paying your share of the tax burden. California already suffers too many scoflaws sneaking off without paying their bills.
>
> Further, Clinton signed that law while Monica Lewinsky was doing him. I suspect we can get that reversed for the asking; especially in that every state is now hurting for revenue. The law never made any sense to me and, as you say, I'm a CPA. Just another giveaway.
>
> PM

Joe Bradley Answers:
An excise tax is a tax on GOODS AND PRODUCTS, not income. This is an income tax because it taxes income, not goods or products. You're not a very good CPA, are you?

I'm sure the Monica Lewinsky defense will be used by California in and when this albatross hits federal court.

By the way, did you bother to tell Jerry Brown of your legal theories regarding the defense of a Federal lawsuit regarding this bit of idiocy? After all, he is the one who will have to defend it.

By the way, the Federal Government does not have an initiative system.

The Whack Is Back.

Just when you thought you have seen it all from our resident jester Paul McCauley, he will prove you wrong.

While reading the informative Sacramento Bee "State Worker" blog, I came across Jon Ortiz' reporting of the latest shot in Mr. McCauley's war on retirees. The Secretary of State has entitled it "Tax on Pension Distributions and Health Care Benefits." It can be found by CLICKING HERE.

In the body of the text is the following statement that California "May impose a one-time, additional tax on non-California residents whose pension benefits exceed $50,000 in a year, and who earned income in California." This sounds very good if it weren't for the fact that it VIOLATES FEDERAL LAW and, in so doing, will necessitate a costly and losing Federal court battle by California to force it on non-resident retirees of California. Why doesn't Paul McCauley, being the Certified Public Accountant that he is, know this?

On January 10, 1996, Legislation restricting the States' right to tax nonresident pension income was signed into law by President Clinton. This was known as the "Pension Source Act" or HR 394, now PL 104-95.

"This law prohibits states from taxing the pensions of non-residents. A retiree can receive pension income, including withdrawals from IRAs and other retirement accounts, without being taxed by their previous state of residence."

More on this law can be viewed by CLICKING HERE.

As if California doesn't have enough financial problems, now McCauley wants to embroil the State in costly lawsuits to nowhere.

Obviously Mr. McCauley has lost his mind. If you find it please return it to his last reported place of employment:

Sheet Metal Workers' Union, Local 105
2120 Auto Centre Dr.
Glendora, CA 91740

(909) 305-2800 - Main Office
(909) 305-2822 - Fax