Robert Green wrote:

Not surprising. We didn't dodge the meltdown. As James Cain so
eloquently put it: "The Postman *Always* Rings Twice." There's been
an incredible shift in the nature of business with the advent of the
internet. Brick and mortar stores that pay enormous amounts of sales
tax have been replaced by Amazon and Ebay that don't pay those taxes.
Ebay is home to thousands of Chinese vendors who pay no taxes and
mark their items as "gifts" to avoid import duties. All these small
revenue losses add up, and those who avoid paying taxes are forcing
their share of the burden onto others. The effects of the internet
are just too colossal to capture in a single message.

No business pays a "sales tax" on merchandise they sell. The tax is a tax on
the consumer, not the business.


So as traditional revenue streams dry up, tax collectors are going to
just go after new sources. The garage sale, the cookie sale, the
lemonade stand, etc. You're clearly astute enough to know what a
disaster is looming with unfunded or underfunded state and local
pension and health plans. I believe it's going to make the SSA's
problems look simple and manageable by comparison. A cold rain's a
comin' and it's coming fast. States in my area have been raising
every fee they can think of to raise money and they are looking to
raise them higher and create new and different fees. I was surprised
that California didn't legalize pot so it could tax it. It was a
close vote and as the older voters die out, I expect it will pass in
the near future. They need the money too badly.

You're right about the unfunded liabilities. What we need is federal
oversight of these liabilities.

The way it works is thusly: A government body implements an employee benefit
(pension, health care, etc.). Actuaries determine the amount the
governmental entity needs to set aside each year to keep the program solvent
in perpetuity. When it comes time to fork over the money to the retirement
system, the government entity sometimes says "We need that money for parks
and free ice cream for the children this year. We'll catch up next year."

But they don't. Catch up, that is.

As sometimes happens, like in Orange County, the funds in the benefit
account are unwisely invested. And lost.