|
Posted: Jul
31, 2020 8:30 PM
Source: Genaro Molina/Los
Angeles Times via AP
California Democratic
Governor Gavin Newsom is behind on his property taxes again. Maybe this explains why the governor allowed his Napa Valley
winery to stay open but ordered other wineries in the state to close
down.
As
RedState's Jennifer Van Laar reports, the Marin County Tax Collector's website currently lists Gov.
Newsom's property taxes on his Kentfield estate as delinquent. Newsom did
manage to pay his property taxes on his Sacramento mansion this year, but not
without racking up a late-payment penalty of some $2,094.15.
In March,
Newsom became the first governor to issue a stay-at-home order in response to
the Wuhan coronavirus. A month later, Newsom was praising counties in the state
for pledging to cancel penalties on property owners who can't pay their taxes
on time because of the coronavirus.
"I
would like to thank the California State Association of Counties and the
California Association of County Treasurers and Tax Collectors for committing
to providing economic relief for residents and small businesses facing
hardships due to COVID-19," Newsom said in a statement.
But why
can't the governor pay his property taxes on time?
While Newsom
has repeatedly shut down large swaths of the California economy, forcing
millions onto the unemployment rolls, the career politician's government salary
has been arriving steadily throughout the lockdowns.
Newsom, a
tax-and-spend Democrat, subscribes to a political philosophy that calls for
soaking California workers, families, and business owners with exorbitant taxes
and then spending their hard-earned cash on stupid things like stimulus
checks for illegal
aliens.
Newsom wants
to raise taxes in California, but he can't even pay the taxes he owes now on
time.
Gavin
Newsom’s $3.7 Million Estate Was Gifted to Him in 2019; 3 Months Later He Got a
$2.7 Million Tax Free Cash-Out
https://www.redstate.com/jenvanlaar/2020/07/25/gavin-newsoms-3-7-million-estate-was-gifted-to-him-in-2019-3-months-later-he-got-a-2-7-million-tax-free-cash-out/
- Gavin
Newsom’s $3.7
million, 12,000 square foot mansion, on 8+ acres along the
American River in Sacramento, was the area’s most expensive home sale in
2018
- The
gated estate consists of a 6 bedroom/10 bath home, a guest house, a pool, a tennis court, and a
wine cave
- An
LLC registered to Newsom’s cousin, long-time business partner, and
Co-President of PlumpJack, Jeremy Scherer, paid cash for the estate in
December 2018
- Newsom’s
spox, though, claimed in Jan 2019 that it was Newsom who’d paid cash for
the home – puzzling, since Newsom still carried a $3.2 million mortgage on
his prior home
- In
Oct 2019 the LLC gifted
the home to the Newsoms free and clear, claiming Newsom
was a member of the LLC to avoid a $4,000 Transfer Tax
- In
January 2020 the Newsoms
received $2.7 million tax-free when they obtained a cash-out refinance
- Newsom’s
financial disclosure forms don’t mention the LLC or the gifts, which far exceed the $500
limit
- In
2003, Newsom was
cited for failing to disclose $11 million in real estate and
business loans
One thing that’s become extraordinarily clear to
Californians in 2020 is that there’s one set of rules for Gov. Gavin Newsom,
and there’s another set of rules for the rest of us. He preaches that we’re all
in this together and that we have to sacrifice to “meet this moment,” yet he’s
not missing a paycheck.
As California businesses struggle, he sends a $1 billion contract for masks
to a Chinese company. When he shut down wineries
throughout 80 percent of California, he kept his open.
While the dream of owning a home is increasingly
out of reach for California’s families, it appears that Newsom received a $3.7
million estate from an LLC owned by his cousin then, a few months later took out
a $2.695 million (tax-free)
cash-out mortgage on it — and didn’t
report the gift on any of his financial disclosure forms.
Yes, it’s clear that Gavin Newsom doesn’t live
by the same rules the rest of us do. It’s good to be king.
During the eight years that Gavin Newsom served
as California’s Lieutenant Governor, he and his family still lived a few hours
from Sacramento, in their $4.5 million Bay Area compound. Throughout the 2018
gubernatorial campaign, he wouldn’t commit to moving his family to the capital.
Days before his January 7, 2019 swearing-in ceremony, Newsom announced that the family would be moving into the Governor’s
Mansion — which wasn’t true at all. Unbeknownst to the public, an LLC owned by
Newsom’s cousin had already purchased an estate in Fair Oaks on December 21,
2018, for the Governor’s family to live in, for $3.7 million cash.
Newly elected
anti gun and pro illegal alien Governor Gavin Newsom (D) just dropped $3.7M on
a 6b 10ba house in Fair Oaks, CA pic.twitter.com/5OXlQw1xTh
A few weeks later, the Sacramento Bee was
apparently tipped off to the LLC’s purchase. According to a January 17, 2019
story, when the reporter contacted the Governor’s office for comment, his spokesperson confirmed that the Newsoms would be moving to the Fair Oaks property
“as soon as renovations were completed” and that the estate was much more
kid-friendly than the Governor’s mansion.
Newsom’s spokesperson, choosing his words
carefully, confirmed that the property was purchased through an LLC “registered in the name of…Newsom’s
cousin Jeremy Scherer” (emphasis added), but claimed that the Newsoms paid cash
for the home. At that time, the only publicly-available corporate document was
the Articles of Organization, which listed Jeremy Scherer as the registered agent, so the
spokesperson was correct but left out crucial information — that Newsom was not
a member of the LLC.
The First Family moved to the Fair Oaks home
somewhere around the beginning of May 2019, according to a blog post from a neighbor and
local Realtor, and in October 2019, the LLC
transferred the deed to Gavin and Jennifer Newsom. The Deed states that the
Documentary Transfer Tax ($4,070) was waived because the transaction was a
“transfer out of LLC for benefit of grantor/grantee — no change in interest.”
In late January 2020, Gavin and Jennifer
Newsom obtained a cash-out refinance
mortgage for $2,695,000 on the Fair Oaks property. Mortgage proceeds are not taxable income.
Gavin Newsom’s spokesperson doesn’t say it
outright, but the inference from his January 2019 statement is that Newsom
owned the LLC that purchased the estate. While celebrities or other
high-profile people sometimes purchase their homes through LLC’s or trusts for
privacy reasons, there was no reason for Newsom to take that route since California law prohibits
state and local agencies from publishing the address of elected officials on documents like property tax records, and financial
disclosure forms don’t require him to list the address of his personal
residence.
But Newsom isn’t, and never has been, a member
of the LLC, according to documents filed with the California Secretary of
State. Jeremy Scherer formed the LLC on November 28, 2018, and since the name
of the LLC is the street address of the Fair Oaks property it’s a fair
assumption that the LLC’s only purpose was to purchase that property. As
mentioned above, the Articles of Organization don’t list the member(s) of the
“One Manager” LLC, but a required filing, a Statement of Information dated
June 29, 2019, lists Scherer as the only member/manager.
“If the limited liability company has more than one manager or
member, enter name(s) and addresses of the additional managers or members on
the Attachment to Statement of Information (Form LLC-12A).”
And, if Newsom later became a member/manager,
the LLC was required to file an updated Statement of Information immediately.
No update has been filed to date — more than a year later — so Newsom is not a
member of the LLC and had no legal interest in the Fair Oaks property.
With that knowledge, the Grant Deed giving the
Newsoms title to the Fair Oaks property is evaluated in an entirely different
light – it’s now a gift, according to corporate law attorneys RedState spoke to
about the transaction. It’s not illegal for an LLC to gift property to a person
who’s not a member, but the attorneys said they’ve never taken part in such a
transaction nor would they ever allow a client to. Such a transaction raises
major red flags for tax and regulatory agencies, they said, since it may
indicate attempted tax fraud, money laundering, or a payoff/bribe.
Gavin Newsom has been an elected official in
California for 23 years, so he’s been obligated to file annual financial disclosure
reports under California’s Political Reform Act for 23 years, and is well aware
of his legal obligations to report companies he owns a stake in and
allowable/reportable gifts.
He can’t claim ignorance or confusion about this
obligation, especially since he was called on the carpet in 2003 after failing to report $11 million
in real estate and business loans over a four-year period. In that case, he blamed his failure to report on “bad advice”
from the San Francisco City Attorney — who said Newsom was lying. Newsom vowed
to correct his filings.
Still, in the current instance, Newsom didn’t
report the value of six months’ worth of rent or the total value of the home
the LLC gifted to him in 2019. Gifts from certain family members, such as first
cousins, aren’t reportable, but these gifts were from the LLC and not from
Scherer personally. The penalties for failing to report are steep:
Failure to comply with the laws related to gifts, honoraria,
loans, and travel payments may, depending on the violation, result in criminal
prosecution and substantial fines, or in administrative or civil monetary
penalties for as much as $5,000 per violation or three times the amount
illegally obtained. (See Sections 83116, 89520, 89521, 91000, 91004 and
91005.5.
The value of the rent alone ($17,463 a month, according to
Zillow) is far in excess of the $500 a year gift limit, making the LLC’s gifts to Newsom illegal.
If by some miracle an
unrecorded/lost/my-dog-ate-them corporate document appeared showing that Newsom
did own the LLC that purchased the home from the start or became a member in
2019, he would have been required to list the LLC and the LLC’s asset (the
home) on Form 700’s. Neither his 2019 or 2018 Form 700 claim that Newsom owned even a portion of the LLC.
Since it was falsely represented to Sacramento
County officials that the Grant Deed from the LLC to the Newsoms was a transfer
from an LLC to a member, Newsom unjustifiably got out of paying the $4,087
Documentary Transfer Tax.
More importantly, the value of the home itself,
$3.7 million, is considered income by the IRS, and a tax expert consulted by
RedState said that the six months of free rent would also need to be reported
to the IRS as income.
Based on publicly-available information, it’s
not clear where the $3.7 million to purchase the Fair Oaks home in December
2018 originated. Given their reported average annual
income of $1.2 million in the years leading up to the 2018 campaign and the fact that their Marin County home was mortgaged
for $3,225,000, it’s unlikely that Gavin & Jennifer Newsom had $3.7 million
sitting around to invest in an LLC that their names weren’t even on.
If the $3.7 million used to purchase the home
came from another source — donors, friends, or whomever — then Gavin and
Jennifer Newsom were “gifted” the home, received $2,695,000 cash tax-free, and
retain title to the home, that looks a lot like money laundering and/or
concealing donations or improper gifts. Since it’s on record that he failed to
report two “loans” Gordon Getty gave him, totaling $2.1 million, to purchase
luxury real estate in the early 2000s, it’s not
exactly against type for him to take money from benefactors then “mistakenly”
omit that funding from financial disclosure records.
The more one examines all of the circumstances
around Newsom’s Fair Oaks estate, the more questions arise. Gavin Newsom needs
to provide real answers, not the kind he’s given in the past.
Jennifer Van Laar is Deputy Managing Editor at RedState and founded Save California PAC. Follow her
work on Facebook and Twitter. Story tips: jenredstate@protonmail.com.
A DACA amnesty would put more citizen children of illegal aliens — known as “anchor babies” — on federal welfare, as Breitbart News reported, while American taxpayers would be left potentially with a $26 billion bill.
Additionally, about one-in-five DACA illegal aliens, after an amnesty, would end up on food stamps, while at least one-in-seven would go on Medicaid. JOHN BINDER
THE NEW PRIVILEGED CLASS: Illegals!
This is why you work From Jan - May paying taxes to the government ....with the rest of the calendar year is money for you and your family.
Take, for example, an illegal alien with a wife and five children. He takes a job for $5.00 or 6.00/hour. At that wage, with six dependents, he pays no income tax, yet at the end of the year, if he files an Income Tax Return, with his fake Social Security number, he gets an "earned income credit" of up to $3,200..... free.
He qualifies for Section 8 housing and subsidized rent.
He qualifies for food stamps.
He qualifies for free (no deductible, no co-pay) health care.
His children get free breakfasts and lunches at school.
He requires bilingual teachers and books.
He qualifies for relief from high energy bills.
If they are or become, aged, blind or disabled, they qualify for SSI.
Once qualified for SSI they can qualify for Medicare. All of this is at (our) taxpayer's expense.
He doesn't worry about car insurance, life insurance, or homeowners insurance.
Taxpayers provide Spanish language signs, bulletins and printed material.
He and his family receive the equivalent of $20.00 to $30.00/hour in benefits.
Working Americans are lucky to have $5.00 or $6.00/hour left after Paying their bills and his.
The American taxpayers also pay for increased crime, graffiti and trash clean-up.
Cheap labor? YEAH RIGHT! Wake up people!
JOE LEGAL v LA RAZA JOSE ILLEGAL
Here’s how it breaks down; will make you want to be an illegal!
THE TAX-FREE MEXICAN UNDERGROUND ECONOMY IN LOS ANGELES COUNTY IS ESTIMATED TO BE IN EXCESS OF $2 BILLION YEARLY!
Staggering expensive "cheap" Mexican labor did not build this once great nation! Look what it has done to Mexico. It's all about keeping wages depressed and passing along the true cost of the invasion, their welfare, and crime tidal wave costs to the backs of the American people!
AMERICA: YOU’RE BETTER OFF BEING AN ILLEGAL!!!
This annual income for an impoverished American family is $10,000 less than the more than $34,500 in federal funds which are spent on each unaccompanied minor border crosser.
A study by Tom Wong of the University of California at San Diego discovered that more than 25 percent of DACA-enrolled illegal aliens in the program have anchor babies. That totals about 200,000 anchor babies who are the children of DACA-enrolled illegal aliens. This does not include the anchor babies of DACA-qualified illegal aliens. JOHN BINDER
“The Democrats had abandoned their working-class base to chase what they pretended was a racial group when what they were actually chasing was the momentum of unlimited migration”. DANIEL GREENFIELD / FRONT PAGE MAGAZINE
As Breitbart News has reported, U.S. households headed by foreign-born residents use nearly twice the welfare of households headed by native-born Americans.
Simultaneously, illegal immigration next year is on track to soar to the highest level in a decade, with a potential 600,000 border crossers expected.
“More than 750 million people want to migrate to another country permanently, according to Gallup research published Monday, as 150 world leaders sign up to the controversial UN global compact which critics say makes migration a human right.” VIRGINIA HALE
For example, a DACA amnesty would cost American taxpayers about $26 billion, more than the border wall, and that does not include the money taxpayers would have to fork up to subsidize the legal immigrant relatives of DACA illegal aliens.
Exclusive–Steve Camarota: Every Illegal Alien Costs Americans $70K Over Their Lifetime
Every illegal alien, over the course of their lifetime, costs American taxpayers about $70,000, Center for Immigration Studies Director of Research Steve Camarota says.
During an interview with SiriusXM Patriot’s Breitbart News Daily, Camarota said his research has revealed the enormous financial burden that illegal immigration has on America’s working and middle class taxpayers in terms of public services, depressed wages, and welfare.
“In a person’s lifetime, I’ve estimated that an illegal border crosser might cost taxpayers … maybe over $70,000 a year as a net cost,” Camarota said. “And that excludes the cost of their U.S.-born children, which gets pretty big when you add that in.”
LISTEN:
“Once [an illegal alien] has a child, they can receive cash welfare on behalf of their U.S.-born children,” Camarota explained. “Once they have a child, they can live in public housing. Once they have a child, they can receive food stamps on behalf of that child. That’s how that works.”
Camarota said the education levels of illegal aliens, border crossers, and legal immigrants are largely to blame for the high level of welfare usage by the f0reign-born population in the U.S., noting that new arrivals tend to compete for jobs against America’s poor and working class communities.
In past waves of mass immigration, Camarota said, the U.S. did not have an expansive welfare system. Today’s ever-growing welfare system, coupled with mass illegal and legal immigration levels, is “extremely problematic,” according to Camarota, for American taxpayers.
The RAISE Act — reintroduced in the Senate by Senators Tom Cotton (R-AR), David Perdue (R-GA), and Josh Hawley (R-MO) — would cut legal immigration levels in half and convert the immigration system to favor well-educated foreign nationals, thus relieving American workers and taxpayers of the nearly five-decade-long wave of booming immigration. Currently, mass legal immigration redistributes the wealth of working and middle class Americans to the country’s top earners.
“Virtually none of that existed in 1900 during the last great wave of immigration, when we also took in a number of poor people. We didn’t have a well-developed welfare state,” Camarota continued:
We’re not going to stop [the welfare state] tomorrow. So in that context, bringing in less educated people who are poor is extremely problematic for public coffers, for taxpayers in a way that it wasn’t in 1900 because the roads weren’t even paved between the cities in 1900. It’s just a totally different world. And that’s the point of the RAISE Act is to sort of bring in line immigration policy with the reality say of a large government … and a welfare state. [Emphasis added]
The immigrants are not all coming to get welfare and they don’t immediately sign up, but over time, an enormous fraction sign their children up. It’s likely the case that of the U.S.-born children of illegal immigrants, more than half are signed up for Medicaid — which is our most expensive program. [Emphasis added]
As Breitbart News has reported, U.S. households headed by foreign-born residents use nearly twice the welfare of households headed by native-born Americans.
Every year the U.S. admits more than 1.5 million foreign nationals, with the vast majority deriving from chain migration. In 2017, the foreign-born population reached a record high of 44.5 million. By 2023, the Center for Immigration Studies estimates that the legal and illegal immigrant population of the U.S. will make up nearly 15 percent of the entire U.S. population.
Breitbart News Daily airs on SiriusXM Patriot 125 weekdays from 6:00 a.m. to 9:00 a.m. Eastern.
California’s Woke Hypocrisy
Leaders offer platitudes and counterproductive policies rather than opportunities and better living standards for the state’s minorities.July 29, 2020
California
Economy, finance, and budgets
Politics and law
No state wears its multicultural veneer more ostentatiously than California. The Golden State’s leaders believe that they lead a progressive paradise, ushering in what theorists Laura Tyson and Lenny Mendonca call “a new progressive era.” Others see California as deserving of nationhood; it reflects, as a New York Times columnist put it, “the shared values of our increasingly tolerant and pluralistic society.”
In response to the brutal killing of George Floyd in Minneapolis, Los Angeles mayor Eric Garcetti announced plans to defund the police—a move applauded by Senator Kamala Harris, a prospective Democratic vice presidential candidate, despite the city’s steep rise in homicides. San Francisco mayor London Breed wants to do the same in her increasingly crime-ridden, disordered city. This follows state
attorney general Xavier Becerra’s numerous
immigration-related lawsuits against the Trump
administration, even as his state has become a
sanctuary for illegal immigrants—complete
with driver’s licenses for some 1 million and free
health care.
attorney general Xavier Becerra’s numerous
immigration-related lawsuits against the Trump
administration, even as his state has become a
sanctuary for illegal immigrants—complete
with driver’s licenses for some 1 million and free
health care.
Despite these progressive intentions, Hispanics
and African-Americans—some 45 percent of
California’s total population—fare worse in the
state than almost anywhere nationwide. Based on
cost-of-living estimates from the U.S. Census
Bureau, 28 percent of California’s African-
Americans live in poverty, compared with 22
percent nationally. Fully one-third of Latinos,
now the state’s largest ethnic group, live in
poverty, compared with 21 percent outside the
state. “For Latinos,” notes longtime political
consultant Mike Madrid, “the California Dream is
becoming an unattainable fantasy.”
and African-Americans—some 45 percent of
California’s total population—fare worse in the
state than almost anywhere nationwide. Based on
cost-of-living estimates from the U.S. Census
Bureau, 28 percent of California’s African-
Americans live in poverty, compared with 22
percent nationally. Fully one-third of Latinos,
now the state’s largest ethnic group, live in
poverty, compared with 21 percent outside the
state. “For Latinos,” notes longtime political
consultant Mike Madrid, “the California Dream is
becoming an unattainable fantasy.”
Since 1990, Los Angeles’s black share of the population has dropped in half. In San Francisco, blacks constitute barely 5 percent of the population, down from 13 percent four decades ago. As a recent University of California at Berkeley poll indicates, 58 percent of African-Americans express interest in leaving the state—more than any ethnic group—while 45 percent of Asians and Latinos are also considering moving out. These residents may appreciate California’s celebration of diversity, but they find the state increasingly inhospitable to their needs and those of their families.
More than 30 years ago, the Population Reference Bureau predicted that California was creating a two-tier economy, with a more affluent white and Asian population and a largely poor Latino and African-American class. Rather than find ways to increase opportunity for blue-collar workers, the state imposed strict business regulations that drove an exodus of the industries—notably, manufacturing and middle-management service jobs—that historically provided gateways to the middle class for minorities. As a recent Chapman University study reveals, California is the worst state in the U.S. when it comes to creating middle-class jobs; it tops the nation in creating below-average and low-paying jobs.
Following Floyd’s death, even environmental groups like the Sierra Club issued bold proclamations against racism, but they still push policies that, in the name of fighting climate change, only lead to higher energy and housing costs, which hurt the aspirational poor. Many businesses, including small firms, must convert from cheap natural gas to expensive, green-generated electricity, a policy adamantly opposed by the state’s African-American, Latino, and Asian-Pacific chambers of commerce.
Meantime, California’s strict Covid-19 lockdown policies, imposed by a well-compensated (and still-employed) public sector, have imperiled small firms. “There’s a sense that there was major discrimination against local small businesses,” said Armen Ross, who runs the 200-member Crenshaw Chamber of Commerce in South Los Angeles. “They allowed Target and Costco to stay open while they were closed. Many mom-and-pops may never come back.” Many restaurants—roughly 60 percent are minority-owned—may never recover, notes the California Restaurant Association.
In the past, poor Californians, whether from the Deep South, Mexico, or the Dust Bowl, could look to the education system to help them advance. But California now ranks 49th nationally in the performance of poor, largely minority, students. San Francisco, the epicenter of California’s woke culture, has the worst scores for black students of any county statewide. Yet educators, particularly in minority districts, often seem more interested in political indoctrination than in improving scholastic results. Half of California’s high school students can barely read, but the educational establishment has implemented ethnic-studies courses designed to promote a progressive, even anticapitalist, and race-centered agenda. Unless the education system changes, California’s black and Hispanic students face an uncertain future. A woke consciousness or deeper ethnic identification won’t lead to successful careers. One can’t operate a high-tech lathe, manage logistics, or engineer space programs with ideology.
California’s failure to improve conditions for Latinos and blacks was evident even before the lockdowns and recent unrest. What the state’s minorities need is not less policing, or systematic looting of upscale neighborhoods, or steps to reimpose affirmative action, or kneeling politicians; they require policies that empower working-class citizens of all races to ascend into the middle class.
The state’s leaders should prioritize improving middle-class jobs and opportunities, replacing indoctrination with skills acquisition, and encouraging local businesses. Considering the nature of California politics, this can happen only if minority Californians demand something different. That could happen if enough of these residents realize that the state’s ruling progressive class is interested in their votes—but apparently not in improving their lives.
No comments:
Post a Comment