California

California, with a population of 40 million, about 14 million personal income tax returns were filed. The top one percent (140,000) paid half the taxes while the bottom 20% received money back even though they paid in zero because of various tax credits. There is now a proposal for a 5% wealth tax on all whose net worth is over one billion dollars. This represents about 200 people and would bring in about $25 billion. This is a onetime tax to offset part of the expected budget deficit. California has experienced a dramatic swing from massive surpluses (peaking around $97 billion in 2022) to significant budget deficits, with figures like $45 billion (2024-25 proposal) This does not include the long-term debt of $1.6 trillion because of unfunded pensions and healthcare promises. California has the highest state income tax (14.4%) in the country and many high earning professionals and tech figures are leaving and moving to states like Texas and Florida where there is no state income tax. As more wealthy people leave the state, they are being replaced illegal migrants who have very few assets and now number 2.6 million.

Poverty

It is difficult to compare living cost in different countries but one way to get an idea is to compare the poverty level in the US with the GDP per capita of other countries. The poverty level for a single person in the US is $15,000 per year and the average income around the world is $5,000. There are 197 countries and 127 of those have GDP per capita incomes of less than $15,000

European migrants

Europe has made a 180 on immigration. In the past they welcomed migrants but all that has changed. In recent years, migrants are being deported in record numbers and many are turned back at the border despite international law. This includes families who have children born in the new country. In countries like Poland and Latvia which have long borders with Russia, walls are built and have reduced migrant numbers by 90%. This change in migrant policy was caused by a number of factors. First off, crime has increased including gangs and drugs. Second most migrants ended up on public assistance. Third many are Muslim and cannot assimilate. While many groups protest these changes polls show that 75% of the people favor the new rules.

Electric

Over the years California has led the country in reducing the use of fossil fuels but this has increased the cost of electricity, which is two the three times higher than the rest of the country. In order to help low-income people with their electric bill there will be a fixed monthly charge added to the bill based on income. The higher the income the higher the charge. Then the cost per kwt hr will be reduce to help those with low incomes. It will be similar to a progressive income tax. The state tax department will supply private tax information to the utility companies so they can determine the extra charge. This will use a fixed charge to redistribute income. It will save the low-income families $6 per month and raise the higher income families $120 per month. These charges are expected to increase in the future.

Compassion

Recent revelations of welfare fraud in Minnesota show a pattern that has been seen in other areas, the most notable is the situation at the southern border. It was compassionate kind people, who wanted to help migrants escaping from terror in their homelands, that led the way for their entry into the country. The same compassion was evident in the desire to help homeless, hungry children that opened the door to fraud. Three separate approaches were used. First was to feed the hungry, second to house the homeless and third to treat autistic children. They each followed a similar path, starting small and growing rapidly. Using the autistic scheme as an example, they went to MN Social Services in 2018 asking for funds to help autistic children and they were given $3 million dollars. They then proceeded to expand the need by going mostly to Somali families and paying them $400 to $1,500 to say their child was autistic. In the following years they received $54 million in 2019, $77 million in 2020, $183 in 2021, $280 million in 2022 and $400 million in 2023. The numbers in the other two schemes are similar. People working in social service recognized that this growth represented something suspicious and reported these activities but nothing was done. Many believe the hesitancy was caused by the fear of being called racist which cannot be proven because it is difficult to get to motives. The more acceptable excuse is greed. The point is that schemes like this start with the good intentions of compassionate people.

Ukraine war

As of June 2025, includes 40 months of war, the US has spent $187 billion and Europe another $300 billion supplying Ukraine with the military support they needed. That would be $12 billion per month. Starting last July, the US is no longer giving aid to Ukraine but rather selling military supplies to Europe, who in turn gives them to Ukraine. This is a significant change in US policy. This is because the US has the equipment needed and Europe does not. As the US pulls away from the war, Europe must step up and thus, they recently approved $100 billion for Ukraine. The EU support for Ukraine is unwavering and thus the war continues. They see it as a war of attrition and thus it may go on for many more years. If, at some day in the future, the war ends there will not be much left of Ukraine. As of June 2025, the best estimates say that 400,000 Ukrainians and 800,000 Russians have been killed or injured. In addition, since the start of the war about 7 million have left Ukraine and live as refugees while another 4 million are displaced within the country. 90% of the refugees are women and children as the law does not allow the men to leave. This 10 million represent 30% of the population.

Tariffs

Two government statistics that came out recently deserve further investigation. First off the unemployment rate increased from 4.4% to 4.6% Because of DOGE about 300,000 federal government left their jobs and about 2 million illegal immigrates self-deported. Second, the GDP went over 4% percent but that included tariffs which accounted for about one percent of the growth.