President Obama’s plan to assist struggling home owners is well intentioned, but almost completely worthless for us in Riverside County, or California, or any other states with plunging real estate markets. Under the plan, people who are current on Fannie Mae and Freddie Mac mortgages for their principal homes could obtain less expensive loans for up to 105% of the property value.

For example: A person whose house was worth $300,000 could get a loan for $315,000.

The problem is that 46% of Riverside County mortgage holders owe more than 105% of their homes’ value. San Diego and San Bernardino have more than 30% over that limit. And in Los Angeles County, 29% will not be eligible. The plan would have to be hiked up to 140 or 150% to be of any real help.

For those ineligible for the first part of his plan, there is a second part. Loan interest rates could be dropped to as low as 2%, loans extended to 40 years, and/or the borrower could skip interest payments on a portion of the principal, or finally, a portion of the debt could be forgiven. Unfortunately, the second part doesn’t exist yet and will be optional for the lenders to… Read More

I know that some of you would like me to talk more about issues other than fiscal/financial ones. And I will do that when bills move or issues come to the floor. However, I am a bean counter (CPA) by trade and I do sit on 3 of the 4 financial committees on which members of the House can sit (The only one I am not on is the tax-writing Ways and Means Committee). Numbers are kind of what I do. And of course, issue number 1, 2, and 3, both in the public’s mind and in DC, is the economy right now.

One of the services I hope to provide the readers of this blog is information about what is happening back here which will hopefully help you navigate the very treacherous economic waters ahead. To that end, all 3 of the committees on which I sit met last week. Here is a brief synopsis of what I learned from those hearings…..and some comments on other stuff you may want to know:

Budget Committee: Last week’s witness in this committee was Treasury Secretary Timothy Geithner talking about the President’s budget. He vigorously defended the budget, which I would… Read More

Saturday’s FR front page included an OC Register article about Orange County taxpayer dollars funding Planned Parenthood. Thankfully, Supervisor John Moorlach uncovered the county contracts that use tax dollars for “comprehensive reproductive education for teens and preteens.” This “comprehensive” education undoubtedly includes information about abortion availability for the “teens and preteens.”

CRI just sent out an email alert to our supporters encouraging them to call the OC Board of Supervisors before they consider this matter at their meeting tomorrow morning. If you’re a taxpayer in Orange County, you should demand the County Supervisors cancel this contract.

OC taxpayers should not be sending $341,788 to an organization whose annual budget now tops $1 billion. Let individual taxpayers decide which non-profit organizations they do and don’t want to support, especially regarding controversial issues like abortion and sex education for children.

The Board of Supervisors will meet… Read More

I think I probably would have titled the article "Revision in tax code to bring jobs"… Revision in tax code to benefit companies Hundreds of millions in savings in budget pact By James P. Sweeney (Union Tribune)

AT ISSUE: CORPORATE INCOME TAXES The state budget deal included legislation that will cut taxes $770 million a year largely for California-based corporations that sell most products out of state.

Pro: California’s existing tax code raises a company’s income taxes when it expands operations or payroll in the state.

Con: The rule, which allows businesses to base income taxes solely on sales within the state, has not delivered an economic boost in other states.

Online: Union-Tribune politics writer John Marelius will take your questions and comments on national and state politics during a live online… Read More

The American Conservative Union (I am a Board member) issued their 2008 ratings of Congress just in time for the national Conservative Political Action Conference a couple weeks ago and the ratings make for some interesting understanding of the politics of our California delegation in Washington, D.C.

Of course, our two lady Senators from San Francisco were disasters. Of the 25 bills picked to indicate political leanings, which included votes on tax rebates, spending cuts,against earmarks, Iraq, global warming, missile defense, and the financial and auto industry bailout (I have attached the complete file), Feinstein and Boxer only voted right on one issue: they both opposed a liberal measure foran almost immediate Iraq troop withdrawal. That one vote earned them a "4" out of 100 on the conservative scale. Even Barack Obama got a more conservative "17" rating as a Senator, and he missed 12 of the 25 votes while campaigning for President!

Over in the House of Representatives, our leading Republican lights with perfect "100" scores were Congressmen Nunes, McCarthy, Royce, and Issa,and the… Read More

Last week I posted a link to a calculator at the Sacramento Bee website where you can calculate an estimate of how much more you will have to pay as a result of the tax increases signed by the Governor. http://www.sacbee.com/1098/story/1627728.html A reader alerted me to some possible flaws with the calculator so I asked our chief economist at the Board to look at the calculator’s sales tax component. The conclusion is the calculator is off in two ways with respect to sales tax, the net result is it likely understates the impact on individuals. I do not believe the flaws are intentional but based on an imperfect understanding of California’s economy. I very much appreciate the Sac Bee’s efforts to make clear the impact of the tax for individual Californians and I encourage them to continue doing so. The analysis of their calculator is below. “We now know the calculator does… Read More

I am pleased to offer this Guest Commentary from longtime FR reader Alyse Fulbright. Fulbright (pictured to the right holding the sign) was one of over 10,000 activists who rallied in Fullerton on Saturday to protest the recent passage of the largest tax increase in California history, as well as to decry the legislature’s placing Proposition 1A on the ballot which, if passed, would extend those taxes additional years…

Yesterday afternoon, I joined thousands of other Californians at the Tax Revolt in downtown Fullerton. The turnout shocked me, with estimates from 8,000 to 15,000 in attendance, depending on who you ask. It was a diverse crowd—college students, old folks, families with children—and everybody there was angry about the recently passed budget and the tax increases that came with it.

… Read More

I am pleased to offer this Guest Commentary from longtime FR reader Alyse Fulbright. Fulbright (pictured to the right holding the sign) was one of over 10,000 activists who rallied in Fullerton on Saturday to protest the recent passage of the largest tax increase in California history, as well as to decry the legislature’s placing Proposition 1A on the ballot which, if passed, would extend those taxes additional years…

Yesterday afternoon, I joined thousands of other Californians at the Tax Revolt in downtown Fullerton. The turnout shocked me, with estimates from 8,000 to 15,000 in attendance, depending on who you ask. It was a diverse crowd—college students, old folks, families with children—and everybody there was angry about the recently passed budget and the tax increases that came with it. … Read More