Welcome to the April Business of Wine issue of NorthBay biz. This is a rather new cover theme for the magazine. It explores some of the aspects of the wine industry that are so vital to our economic strength. We hope this issue provides some insights and broadens your knowledge of the agricultural juggernaut chugging along in our midst every day. Additionally, supplementing the cover theme is a special report on the food and dining industries. So please enjoy all the stories, special features and columns in the North Bay’s only locally owned business publication—NorthBay biz.
BIZ NOW—The Future Is Here, a strategic business event being held April 19 at the Sonoma County Airport, is now less than six weeks away. This interactive, multimedia experience will be unlike other events you’ve attended—no individual speaking for more than 10 minutes, no Power Point presentations and absolutely no panel discussions. Instead, you’ll get first-hand insight and wisdom delivered by local business owners, academics and government officials, including Sonoma State University’s Bill Silver, Sonoma County Supervisor Efren Carrillo and Redwood Credit Union’s Brett Martinez (to name just a few). They’ll share stories that not only define the ride we’ve all been on since the economy went south in 2007, but that also reveal the inspiring, practical and creative solutions they’ve employed.
At BIZ NOW, we can begin to write the story of our future success in the North Bay and make sure that what’s to come for your business will be by design, not by default. For more info or to buy tickets, go to northbaybiznow.com or call Joni at (707) 575-8282.
Just since the beginning of this year, our national debt has grown by approximately $295 billion or almost a staggering $4.5 billion a day to an ever-growing total of $15.5 trillion—with no slow down or, more important, no reversal in sight. Believe it or not, the last stimulus bill allocated more money than was spent on the moon landing and the interstate highway system combined. Now, let’s look at what the country got for all the stimulus money that was spent over the past couple of years. Well actually, after thinking about it, I can’t come up with much—other than expanding the debt. I guess $500 million for a Solyndra here and another $500 million there and it kind of adds up quick.
A few weeks ago, the president released his new budget that called for almost $4 trillion in spending. At the same time, he announced a plan for $2 trillion in deficit reduction to be achieved by a combination of higher taxes and spending cuts. Sounds good on the surface. It’s a start anyway, right? However, let’s look behind the curtain and see how this game is really played. What’s being proposed isn’t really a cut at all. You see, instead of increasing spending over the next 10 years by $9.5 trillion, they’ve agreed to only increase spending by $7.3 trillion over that time span. Can you get any more frugal than that? Here’s the best part, then it’s announced, with much reluctance, you’re forced to slash programs—and the media, as the faithful lap dogs they are, will lament the draconian cuts and bemoan how it’s just not “fair.” All the while, actual spending continues to soar across the board. This game has been played for decades, but this time around, the cupboard is finally bare.
It’s much the same here in California. The pantry is bare. There are approximately one million less people working today in California than there were a decade ago, even though the population has increased by several million. But hidden within those numbers is this little fact: The population increase has been largely by the in-migration of low- skilled workers. The out-migration has been among the more educated, higher-income workers and business owners. A story in the Sacramento Bee stated, “The number of Californians with $500,000-plus annual incomes declined dramatically from 2007 to 2009 as the state’s economy stagnated, leaving fewer to tax.” These high-income earners numbered more than 146,000 in 2007 and fell to less than 99,000 in 2009. Couple that with companies departing for more business-friendly states, taking their employees with them, and it’s easy to see why state revenues plunge as the tax base erodes. And instead of fixing the root causes, our fearless leaders in Sacramento are exactly like a two-trick pony. Their default answer is always the same—raise taxes and impose more regulations and fees. That solution has never worked and never will.
For decades now, California state government has grown. Try counting the number of state agencies and departments. Taxes have inexorably increased to fund, in part, vastly expanded entitlements. The state has driven business away and actually almost closed down or at the very least limited entire industries including: timberland, farmland, fishing, gas and oil, etc. Even some tech companies, our supposed salvation, are fleeing for more business-friendly climes.
A succession of progressive administrations has left California this legacy: the highest sales tax in the country, the third-highest income tax rate made even worse by the fact that the 9.3 percent rate starts at $46,349 for single filers, the second-worst business climate in the nation, the fourth-highest capital gains tax, the second-highest unemployment rate and so on. The list continues, but you get the idea. Those stats were courtesy of the NFIB and the Howard Jarvis Taxpayers Association.
Closing thoughts: The “fairness” crowd drives me crazy. As far as I’m concerned, everyone already paying income taxes is already paying more than their “fair” share, especially when compared to half the people who pay nothing and to the entitlement crowd that’s always claiming something provided by others as a “right.” It isn’t a “right” if somebody else has to pay for it for you. And finally, I sure wouldn’t define “greed” as wanting to keep more of what you earn for yourself and your family. It seems to me the “greedy” are the ones who demand you give them more of what they haven’t earned.
That’s it for now. Enjoy this month’s magazine.
