California Water Crisis

A couple of weeks ago CBS evening news reported that an estimated 1,700 farm jobs could be lost as more than 620 square miles of farmland will go unplanted.  This didn't’ surprise me.  When we drove I-5 this year much of the San Joaquin Valley looked more like desert than farm land.  The U.S. Department of Agriculture expects produce prices to rise by up to 5 percent, adding $500 to the average American family’s grocery bill.   

However, CBS’s report failed to mention that much of the economic consequences of the drought could have been avoided. In May 2007, a Federal District Court Judge ruled that increased amounts of water had to be re-allocated towards protecting the Delta smelt - a three-inch fish on the Endangered Species List.  

Because of this ruling, in 2009 and 2010 more than 300 billion gallons (or 1 million acre-feet) of water were diverted away from farmers in the Central Valley and into the San Francisco Bay - eventually going out into the Pacific Ocean.  

Rather than suspend this policy to protect an endangered three-inch Delta smelt, President Obama chose to continue the federal water policy of releasing water for smelt instead of using that water to irrigate croplands in California.   

This country is blessed with some of the richest water resources in the world.  The United States has 22,000 liters per capita per day, more than enough water for ten times the current population.  For us, it is just a matter of getting the resources to where it is needed.  The lack of long term vision to build water storage facilities and canals to transport water is nothing more than bad government.

All of this will play out in a future crisis for the climate control lobby who can’t wait, I’m sure, to claim higher food prices are the result of climate change. The green lobby has stopped any constructive projects that would collect and save water resources for decades, while advocating we must ration our existing resources with an ever growing population.  

Droughts are never good, but the bright side of the California drought is it may finally drive some sense into our lawmakers, who hopefully are beginning to recognize the need for a more balanced ecology.  One that is slightly tilted towards favoring human beings.

Adams-Farwell' Automobile

Instead of the crank shaft turning inside the engine, the engine spins around the crankshaft!

Great story!

Scrap Public Unions

Unions in the private sector are fine but unions in the public sector should be forbidden.  Wages for public sector jobs should be set according to private sector jobs.  It is a conflict of interest for our lawmakers, who represent the citizens, to be  negotiating with unions and setting the wage scale.  

IRS Records Department

There was some question recently how long we needed to keep records of our tax returns.  My very efficient X-bookkeeper (my wife) decided to look it up at www. IRS.gov.  How long should you keep records?  Here is their answer.

 

How long should I keep records?

The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or that the IRS can assess additional tax. The below information contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

1. You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.

2. You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.

3. You file a fraudulent return; keep records indefinitely.  (Uh-huh, sure!)

4. You do not file a return; keep records indefinitely.

5. You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.

6. You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.

7. Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Interesting, isn't it, how more serious the IRS is about your record keeping than there own!  

 JJ

Immigration Reform

I am for immigration reform, I really am.  But I am not in favor of the current immigration bill passed by the Senate.  That would be the Border Security, Economic Opportunity and Immigration Modernization Act of 2013. 

SB 744. has some good point  and I applaud the Senate - especially Senate Republicans - for their effort.  For instance, the path to citizenship requires over $2000 in fines and thirteen years before an illegal immigrant can even begin to apply for citizenship.  There is other stuff too like obeying the laws, learn the english language, and pay taxes, which a illegal immigrant must do before applying for citizenship.  

Some would say that any path to citizenship is amnesty, but I don't think that's true.  Thirteen years of paying taxes and steep fines for the wrongdoing is punishment enough.  It would be easier for them to go back to their country and start over.  And many probably would, saving us the cost or need to deport them.  In the end, many would not apply for citizenship either, and never be eligible to vote or receive any government assistance - including Social Security.  The bill also makes border security mandatory before any issues of the illegals can be addresses.   

Well then, what's the problem?  The bill is too big!  Unfortunately, the bill, 844 pages by my count (some say 1200 pages) is far too large for anyone to really understand.  And there lies the problem.  Like the infamous Obama Care bill, this bill is so big, and so complicated that, well, we won’t know how it will all work until it gets passed.  That’s plain crazy. 

There are five major parts to this bill.  The House should divided SB 744 into five separate bills, simplify and refine them. then pass them individually.  That way everybody, illegals, law enforcement, Congress and citizens like you and me can read the bills and understand them.