Steve Muehler - Plan 11 for California: Commercial Real Estate Lease Tax
People of say that the definition of “Insanity” is “doing the same thing over and over and expecting a different result”. Well, that is not the definition of “insanity”, that is just a quote by Einstein. The definition of insanity is “the state of being seriously mentally ill; madness” and/or “extreme foolishness or irrationality.” I believe most Americans are suspended today, with all the goings on here in America today, somewhere between the book definition of “insanity” and “Einstein’s” definition of insanity.
That is the sole purpose for this random thought series of blog posts “If I was Governor”, nothing more than an outlet to maybe spark a debate to change the way things are “done over and over the same way expecting different results” without leading to “mass book definition of insanity”.
So, today will be a bit of a rinse and repeat (Einstein’ish), following up on my California Monthly Residential Lease Tax, I would introduce a flat 5% CALIFORNIA MONTHLY COMMERCIAL REAL ESTATE LEASE TAX on all Commercial Real Estate Leases in the State of California. No one individual, or entity, would be immune from this State Tax, including non-profits and religious entities.
Now, I have a small lapse in date from Blog Post 10 to Blog Post 11 simply researching and trying to find the size of the California Commercial Real Estate Lease Market and what the annualized Commercial Real Estate Lease Income is in the State of California. Best I found is that the gross commercial real estate leases in California are generally about twice the size of the gross residential, so I am going to simply haircut that number when providing the total for today’s post.
So, lets bounce off information from Blog Post 10 to get to my theory (or random thought).
So, as I get into Plan 11, I was at a $38 Billion USD deficit after imposing my CALIFORNIA RESIDENTIAL REAL ESTATE LEASE TAX, but I had to eliminate State Income Taxes, State Corporate Taxes, and decriminalized prostitution and some drugs, so, the good people of California feel are feeling real good, and hopefully we are helping the homeless get back into society.
But like I stated before (and I will probably state it again), we have to “Pay to Play” because nothing is free, and $38 Billion has to come from somewhere, and somewhere needs to be properly paid by the “haves” and the “have nots”.
Under my Administration, we would create a mandatory Real State Lease Registration System for all Commercial and Residential Leases in the State of California. ALL REAL ESTATE LEASES IN THE STATE WILL BE REQUIRED TO BE FULLY REGISTERED ON THIS DATABASE. I would advocate legislature to enact laws to ensure no one will want to skirt this.
For California properties, a CALIFORNIA COMMERCIAL RESIDENTIAL LEASE TAX OF A FLAT 5% will be levied on all Commercial Real Estate Leases in the State of California.
Now, this tax rate is higher than the proposed California Residential Real Estate Lease Tax, and if the statement is true that the commercial real estate leases gross income is double that of residential leases on an annualized basis, and if I proposed $8 Billion USD for Residential, to be conservative I am going to call the annual CALIFORNIA COMMERCIAL REAL ESTATE LEASE INCOME to be more in line with $18 Billion USD per year (double Residential, plus additional for the higher tax rate).
NOTE: This blog is only for conservational ideas and I have ‘zero point zero’ percent interest in running for any political offices.
The Score so far on State Budget:
Plan One: Eliminate California State Income Tax
· Resulted in $90 Billion Deficit
Plan Two: Decriminalize Prostitution in California
· Resulted in $1 Billion in State Revenues
· Still have a $89 Billion Deficit, but we have no State Income Taxes and we have Decriminalized Prostitution in California.
Plan Three: California Mortgage Tax
· Resulted in $7 Billion in State Revenues
· Still have a $82 Budget Deficit.
Plan Four: California Real Estate Transfer Tax
· Resulted in $30 Billion in State Revenues
· Still have a $52 Billion Budget Deficit.
Plan Five: Ending the California Homelessness Epidemic
· Resulted in increased state spending, followed by State Budget Savings over many years. Total costs, I could not even come up with a guess, but would try to work within the current budget by utilizing current state land owned, governmental facilities, and current government programs. I am calling it “Even Steven”
· Still have a $52 Billion Budget Deficit – but we have a No Income Tax State, Prostitution is Legal, the Wealthy are Paying their Fair Share, and the streets are less cluttered with homeless.
Plan Six: Ending the State Corporate Income Tax:
· Resulted in a loss of approximately Eleven Billion USD in Annualized Tax Revenues.
· $63 Billion USD Deficit
Plan Seven: Increasing the Gasoline Tax.
· Resulting in an additional $10 Billion USD in Tax Revenues.
· $53 Billion USD Tax Deficit. But…… no State Income Taxes, no State Corporate Taxes, Homelessness is under control and we have legal Prostitution.
Plan Eight: California Transient Lodging Tax
· Resulting in $337,625,000 in Tax Revenues
· Still have a $52.5 Billion USD Tax Deficit.
Plan Nine: California Cocaine, Magic Mushrooms & Peyote
· Resulting in $1.5B in new Tax Revenues
· Still have a $51 Billion USD Tax Deficit.
Plan Ten: California Residential Lease Tax
· Resulting in $8 Billion USD in Tax Revenues
· We will have $43 Billion USD Tax Deficit
Plan Eleven: California Commercial Real Estate Lease Tax
· Resulting in $18 Billion USD in Tax Revenues
· We will have narrowed the debt to $25 Billion USD
I hope we are catching that low-income earners suffer an almost zero tax burden under my plan, and taxes are being set up in a way where deductions (or itemizations) are eliminated, making sure all people pay their “fair share” with the bulk at the top, and the bottom not as much, and many of the taxes are “vice taxes”.
So, now that a frame of this blog series is at a point where you can see my ideas and where they are going, I have now opened the blog up to comment, criticism, etc. Have fun with it, I have a very think skin.
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