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Stories we sometimes miss. Exposed: Moderna’s Vaccine Against Vaccine Dissent.

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Stories we sometimes miss. Exposed: Moderna’s Vaccine Against Vaccine Dissent.

Lee Fang, RealClearInvestigations & LeeFang.com

Finances at the vaccine manufacturer Moderna began to fall almost as quickly as they had risen, as most Americans resisted getting yet another COVID booster shot. The pharmaceutical company, whose pioneering mRNA vaccine had turned it from small startup to biotech giant worth more than $100 billion in just a few years, reported a third-quarter loss last year of $3.6 billion.

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Arpa Garay, Moderna: “It really is a vaccine that’s relevant across all age groups,” she insisted.

In a September call aimed at shoring up investors, Moderna’s thenchief commercial officer, Arpa Garay, attributed some of the hesitancy pummeling Moderna’s numbers to uninformed vaccine skeptics. “Despite some misinformation,” Garay said, COVID-19 still drove significant hospitalizations. “It really is a vaccine that’s relevant across all age groups,” she insisted.

To get past the “misinformation” and convince the public to take continual booster shots, Garay briefly noted that Moderna was “delving down” on ways to partner “across the ecosystem to make sure consumers are educated on the need for the vaccine.”

What Garay hinted at during the call, but didn’t disclose, was that Moderna already had a sprawling media operation in place aimed at identifying and responding to critics of vaccine policy and the drug industry. A series of internal company reports and communications reviewed by RealClearInvestigations show that Moderna has worked with former law enforcement and public health officials and a drug industry-funded non-governmental organization called The Public Good Projects (PGP) to confront the “root cause of vaccine hesitancy” by rapidly identifying and “shutting down misinformation.”

Part of this effort includes providing talking points to some 45,000 healthcare professionals “on how to respond when vaccine misinformation goes mainstream.” PGP and Moderna have created a new partnership, called the “Infodemic Training Program,” to prepare health care workers to respond to alleged vaccine-related misinformation.

The company has also used artificial intelligence to monitor millions of global online conversations to shape the contours of vaccine-related discussion. The internal files — shorthanded here as the Moderna Reports — show high-profile vaccine critics were closely monitored, particularly skeptics in independent media, including Michael Shellenberger, Russell Brand, and Alex Berenson. PGP, which was funded by a $1,275,000 donation from the Biotechnology and Innovation Organization, a lobby group representing Pfizer and Moderna, has identified alleged vaccine misinformation and helped facilitate the removal of content from Twitter, among other social media platforms, throughout 2021 and 2022.

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Kaitlyn Kkrizanic of PGP: Beware of “reports that Sweden is no longer recommending the vaccine for children.”

Emails from that period show that PGP routinely sent Excel lists of accounts to amplify on Twitter and others to de-platform, including populist voices such as ZeroHedge.

The messages also suggested emerging narratives to remove from the platform. “People opposed to vaccines are capitalizing on the NYT [New York Times] article about the CDC withholding vaccine information. The articles do not contain misinformation themselves but are using the news to further prove the CDC is untrustworthy,” wrote Savannah Knell, PGP’s senior director of partnerships, in an email to a Twitter lobbyist in September 2022. In another email the following month, Kaitlyn Krizanic, PGP’s senior program manager, told Twitter to be on the lookout for “reports that Sweden is no longer recommending the vaccine for children.” In some cases, conservative accounts expressing outrage at restrictive pandemic policies, such as vaccination passports, were deemed by PGP as “misinformation” that warranted removal.

The Moderna Reports consistently show the company raising red flags about those reporting documented side effects of the vaccine the biotech company was selling. Such concerns, which may be typical of corporate public relations efforts that want their product shown in the best light, take on a darker cast when it involves medicine injected into people’s bodies.

Like the Twitter Files, the Moderna Reports highlight the push by powerful entities – especially government, Big Tech, and Big Pharma – to identify and brand dissenting opinions about establishment narratives as risky forms of speech. The growing network these efforts rely on shows the growth of what has been called the censorship industrial complex. Moderna’s faltering financials also suggest, at least for now, the limits of that project.

Public Good Projects and Moderna did not respond to repeated requests for comment.

Related: Moderna Is Spying on You by Lee Fang and Jack Poulson

In an internal email sent last July, Moderna notified its team of its latest efforts to shape the vaccine debate. “We have partnered with PGP (The Public Good Projects) and Moderna’s Global Intelligence, Corporate Security, Medical Affairs, Corporate Communications, Clinical Safety and Pharmacovigilance teams to provide media monitoring for misinformation at scale,” Marcy Rudowitz, the company’s customer program lead, wrote. “If and when a response is needed, our team will notify the appropriate stakeholders with recommendations,” she added.

The extent to which the company may intervene to shape content decisions is not clear. PGP continues to boast close relations with establishment institutions, including major medical associations.

The rise of censorship is inextricably connected to the pandemic, which emerged in the U.S. in early 2020. As federal, state, and local governments imposed unprecedented regulations on Americans in the name of public health, efforts arose to discredit counter-narratives that could be spread easily on social media. Early in the pandemic, criticism of policies such as lockdowns and vaccine mandates came almost entirely from independent media, which faced shadowbans and outright censorship on various platforms.

Moderna 2022 ESG Report
Stéphane Bancel, Moderna CEO: “As you can see, we’re losing economies of scale,” he said, explaining price hikes.

When they introduced their vaccines in 2021, manufacturers such as Moderna, Pfizer, and Johnson & Johnson also had a powerful financial interest in bolstering such censorship.

Moderna, perhaps more than other drug firms, is overwhelmingly reliant on the continued success of its vaccine. The company announced a price hike of up to $130 a dose this month, far higher than the $15-26 for American federal contracts, according to the Wall Street Journal. “We’re expecting a 90% reduction in demand,” Modena CEO Stéphane Bancel said, when he was asked to defend the decision. “As you can see, we’re losing economies of scale.”

Far from acting as a neutral arbiter, the Moderna Reports show that the company blurred the lines between public relations and public health. In many cases, Moderna’s intelligence and communications team targeted accurate information that had “the potential to fuel vaccine hesitancy” as menacing forms of misinformation in its reports. Given the size and scope and the censorship industrial complex, it can be difficult to draw a clear straight line between Moderna’s surveillance and actions taken against specific articles, posts, and writers. Instead, as Garay suggested, the company is one stream in an evolving ecosystem aimed at undermining dissent.

Alex Berenson

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Berenson: “It’s nice to know Moderna is watching me. I’m watching them too.”

Independent journalist Alex Berenson is a repeated subject of the company’s surveillance efforts. A former reporter for the New York Times, Berenson quickly emerged as one of the most outspoken critics of vaccine-related policies. He was among the earliest to cast doubt on the Biden administration’s false claim that the vaccinated people could not transmit the COVID-19 virus to others. After government pressure on Twitter, Berenson was banned from the platform in 2021, only to return after successfully litigating against the company.

He appears to still be in the crosshairs. In September 2023, Moderna flagged a tweet from Berenson that highlighted the CDC’s data showing that among 1 million mRNA-vaccinated teenagers, there were from zero to a single COVID death and up to 200,000 side effects.

The company cited Berenson’s tweet under a report headline “Attacks on pediatric COVID-19 vaccines escalate” and claimed he had “cherry-picked data.” However, the company did not directly rebut any of Berenson’s claims in its report. Rather, Moderna noted the “high-risk” danger of Berenson’s viral tweet related to the potential for low child COVID-19 vaccination rates. “Fears about side effects and long-term dangers are major reasons parents report not vaccinating their children,” the report stated. It further concluded that “resistance to COVID-19 vaccines for children can be a gateway to broader anti-vaccine beliefs.”

Other Moderna reports flag Berenson’s tweets for “misinformation about mRNA safety” and claim that he is a “conspiracy theorist” for suggesting that health authorities have not properly taken into account the documented risks of myocarditis (inflammation of the heart muscle) for young men receiving the vaccine. Such questions have been posed by an increasing number of health professionals, but the misinformation reports dismiss any Berenson criticism as inherently false.

“It’s nice to know Moderna is watching me,” said Berenson, when asked about his response to the revelations. “I’m watching them too. mRNA shots carry unacceptably high heart risks for teenagers and young adults. Nearly the entire rest of the world accepts this reality and now discourages or bans people under 50 from taking mRNA Covid boosters. It is unconscionable that Moderna and Pfizer continue to market them to non-elderly adults.”

“They can call me whatever they like,” he noted, “but they can’t stop my reporting.”

Russell Brand

Invision
Brand: Moderna warned of his videos “in anti-vaccine spaces where he is viewed as a truth-teller.”

Russell Brand, the British commentator and comedian, is also a repeated name in the Moderna misinformation files. The left-leaning populist routinely pillories the pharmaceutical industry for exploiting the pandemic to generate unprecedented profits.

Moderna has closely monitored Brand’s criticism of the drug industry.

In various “low-risk” reports produced in August 2023, Moderna flagged videos produced by Brand twice. In one, Moderna noted that Brand had broadcast a monologue about Jonathan Van-Tam, a former senior health official who helped formulate COVID-19 policies in Britain. Van-Tam had just taken a position with Moderna, a move that raised eyebrows with many in the press. In the video, Brand noted that the company had just “made a fortune during the pandemic selling vaccines to the government,” and that the “government worker that bought all those vaccines” was now moving through the revolving door.

In another report, Moderna alleged that Brand “claimed that COVID-19 vaccine mandates were based on a lie in a recent podcast episode.” The video was broadly accurate. The monologue highlights CDC documents that had come to light showing that officials were aware that the virus would “break through” and still infect vaccinated patients. In an ironic twist, Brand finished the segment with a discussion of efforts to censor debate around the vaccine.

Moderna noted they were not yet taking action on this broadcast, but “we are monitoring with our partner, the Public Good Projects.”

The following month, several media outlets reported that several women who insisted on anonymity were claiming that Brand had abused them nearly twenty years ago. The ensuing media firestorm, which led to YouTube demonetizing his account, became fodder for other Moderna misinformation reports. The company warned that the cancellation of Brand was sparking a backlash among social media users, who believed that he may be targeted by government and corporate censors for his outspoken opposition to pandemic narratives.

In a Moderna high-risk report, the company noted that speculation was swirling that “allegations are part of a conspiracy to silence the comedian, who has been a vocal opponent of COVID-19 vaccines.” The report linked an X video of Brand sharply criticizing Moderna and Pfizer for generating “$1,000 of profit every second” in 2021. The specific claim of profiteering was a mainstream claim, a statistic that was produced by Oxfam.

Nowhere in its reports on Brand did Moderna highlight any incorrect information. But the reports noted that they monitored Brand because he “has a large platform with over 6.6 million YouTube subscribers and over 21 million followers across multiple social media platforms.” Moreover, his “videos are widely circulated in anti-vaccine spaces where he is viewed as a truth-teller and threat to authority,” and that Brand maintained support from Tucker Carlson and Elon Musk.

Michael Shellenberger

AP
Shellenberger: Dismissed by Moderna in internal reports as a known “misinformation author.”

The Moderna misinformation reporting system reveals that the pharmaceutical firm maintained an interest in pandemic-related issues that go beyond vaccine policy, overlapping with general issues surrounding the unexplained questions that still swirl around the source of the pandemic.

The company, for instance, flagged discussions around news last year of a congressional whistleblower who came forward with allegations that the CIA suppressed an assessment from analysts that COVID-19 originated at the Wuhan Institute of Virology. The story has garnered widespread coverage in NBC, Science, and ABC News, among other outlets.

But Moderna’s misinformation alerts flagged Sen. Rand Paul, R-Ky., and journalist Michael Shellenberger for distributing information about the CIA allegation. Shellenberger – with whom this reporter has worked on the Twitter Files – had exclusively reported earlier last year that U.S. government sources believed that the “patient zeros” of COVID-19 were a group of Chinese scientists at the Wuhan lab – a major revelation later confirmed by the Wall Street Journal.

Despite his work on the issue, Moderna dismisses Shellenberger in its reports as among its known “misinformation authors.”

“Moderna has spent years spreading disinformation about their vaccines and so it makes sense that they would smear the scientists and journalists who expose them as conspiracy theorists and sources of misinformation,” Shellenberger told RCI.

“The question is why is Moderna spreading disinformation on the high probability that Covid escaped from the Wuhan Institute of Virology lab?” he added. “A company that makes its money selling a coronavirus vaccine shouldn’t care where Covid came from.”

Others

Moderna closely monitored other independent voices. The company flagged left-wing comedian Jimmy Dore for simply tweeting at a New York Times call for triple-vaccination with the two-word response, “Hard pass,” as an example of misinformation. The company also warned about the appearance of Robert F. Kennedy Jr. on the Joe Rogan podcast as well as Lex Fridman, a popular independent podcaster.

AP
Robert F. Kennedy Jr.: Moderna warned of his appearance on the Joe Rogan podcast.

Other reports flag skeptics of vaccine efficiency and potential side effects. In September, Moderna’s system cited Megyn Kelly, the podcaster and former Fox News host, for a viral clip in which she said she regrets the COVID-19 booster after she developed an autoimmune condition that she believes was caused by the shot.

Moderna warned that such comments could “discourage people who are on the fence about getting vaccinated.”  In its alert about Kelly, the company noted that her comments added to growing concern around autoimmune disorders and COVID-19 vaccinations. The Moderna misinformation email proceeded to offer data that appeared to reaffirm, rather than debunk, Kelly’s assertions. The alert concluded with a message about an NIH report that highlights a link between SARS-CoV-2 vaccination and inflammatory and autoimmune skin diseases. Moderna did not dispute the findings of the NIH study, but noted that it “is in rotation in anti-vaccine spaces online.”

Invision
Megyn Kelly: Moderna warned that her apparently valid comments could “discourage people who are on the fence about getting vaccinated.”

The merging of public health and corporate influence peddling has concerned many academics. Jay Bhattacharya, a professor of health policy at Stanford University who says the government violated his free-speech rights by trying to silence his questioning of federal policies regarding COVID, told RCI: “We have a problem that social media companies and the government have allied with pharma to treat information flows around the COVID vaccine as a propaganda problem, rather than a medical issue that is best resolved by patients talking with their doctor about what’s best for them.”

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Jay Bhattacharya: Moderna flagged a tweet of his simply linking to an unwelcome FDA finding on child vaccination.

Bhattacharya was one of the most prominent academics who was shadowbanned under the previous owners of Twitter because of his criticism of the lockdowns and masking policy. He is now one of the plaintiffs litigating against the U.S. government’s role in shaping content decisions on social media platforms in the Missouri v. Biden case, which is now before the Supreme Court.

Bhattacharya’s outspoken advocacy has attracted attention from Moderna as well. In October 2023, shortly after I spoke to him for an interview, Moderna flagged one of the Stanford professor’s tweets that shared a link to a new Food and Drug Administration preprint study that documented “elevated risk of seizures in toddlers and myocarditis in teenagers associated with covid mRNA vaccination.” Moderna did not directly dispute the study findings other than to note that its authors wrote that it “should be interpreted cautiously.”

In the attached report, Moderna added that it had highlighted the tweet and others like it because “concerns about safety and side effects are among the main reasons parents are hesitant about or oppose COVID-19 vaccines for their children.”

In other words, anything that might discourage children from vaccinations, despite any risks or lack of benefits, is dangerous information. That suggests a motive far from bringing truth to the vaccine debate, and far more about dominating it for financial gain.

Near the end of the Moderna call last September, as the biotech firm worked to highlight its stepped-up outreach to consumers, James Mock, the chief financial officer, spoke briefly to assure investors of the company’s ability to continue to make money.

“COVID is a very valuable product line of business and will continue to be,” said Mock, “and we’ll make it more profitable.”

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Biden Biden Cartel Links from other news sources. Reprints from others. Terrorism

‘An outrage, if true,’ says Friedman of reports Biden negotiated scale of Iran attack.

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An outrage if true says Friedman of reports Biden negotiated scale of Iran attack. Below is a reprint from the Jewish News Syndicate.

During the Tuesday edition of the New York City-based radio show, “Sid & Friends in the Morning,” host Sid Rosenberg said he believed that Biden was “behind the whole thing” referring to the missile barrage on Israel.

“I was kind of skeptical, but as the stories are coming out… Look, if this ends up being true, this will be an absolute outrage and a scandal the likes of which I haven’t seen before,” Friedman agreed.

The former ambassador accused Biden of being unprincipled enough to do such a thing, and that he would presumably be motivated by the fear of losing the presidential election over high gas prices, an inevitable result of a regional Mideast conflagration.

The White House has categorically denied the rumors with National Security Council Spokesman John Kirby telling the press on Monday, “I’ve also seen this speculation about messages passed back and forth and warnings.

“We did receive messages from Iran. And they received messages from us, too. But there was never any message to us or to anyone else on the timeframe, the targets, or the type of response,” he said.

“In fact, before yesterday it was presumed that 100 ballistic missiles might overwhelm even the best defensive systems. That was Iran’s intent. And as you all saw for yourself, it didn’t work,” Kirby added, crediting “Israel’s remarkable defensive systems.”

On Monday, Reuters cited an unnamed Turkish diplomatic source, who said Turkish Foreign Minister Hakan Fidan had acted as a kind of go-between between his U.S. and Iranian counterparts over the past week to discuss the upcoming Iranian attack.

U.S. Secretary of State Antony Blinken told Fidan to relay to the Iranians that a regional escalation was not in anyone’s interest, the report said.

“Iran informed us in advance of what would happen. Possible developments also came up during the meeting with Blinken, and they (the U.S.) conveyed to Iran through us that this reaction must be within certain limits,” the source said.

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Media Blackout: 10 News Stories They Chose Not to Tell You.

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Media Blackout: 10 News Stories They Chose Not to Tell You. Below are stories taken from the Vigilant fox’s website.

 

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Winning. Biden-appointed judge torches DOJ for blowing off Hunter Biden-related subpoenas from House GOP.

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Winning. Biden-appointed judge torches DOJ for blowing off Hunter Biden-related subpoenas from House GOP.

A federal judge tore into the Justice Department on Friday for blowing off Hunter Biden-related subpoenas issued in the impeachment probe of his father, President Joe Biden, pointing out that a former aide to Donald Trump is sitting in prison for similar defiance of Congress.

U.S. District Judge Ana Reyes, a Biden appointee on the federal District Court in Washington, spent nearly an hour accusing Justice Department attorneys of rank hypocrisy for instructing two other lawyers in the DOJ Tax Division not to comply with the House subpoenas.

“There’s a person in jail right now because you all brought a criminal lawsuit against him because he did not appear for a House subpoena,” Reyes said, referring to the recent imprisonment of Peter Navarro, a former Trump trade adviser, for defying a subpoena from the Jan. 6 select committee. “And now you guys are flouting those subpoenas. … And you don’t have to show up?”

“I think it’s quite rich you guys pursue criminal investigations and put people in jail for not showing up,” but then direct current executive branch employees to take the same approach, the judge added. “You all are making a bunch of arguments that you would never accept from any other litigant.”

It was a remarkable, frenetic thrashing in what was expected to be a relatively routine, introductory status conference after the House Judiciary Committee sued last month to enforce its subpoena of DOJ attorneys Mark Daly and Jack Morgan over their involvement in the investigation of Hunter Biden’s alleged tax crimes.

Republicans are demanding the two attorneys testify and say it’s crucial for their ongoing impeachment probe of the elder Biden. But the Justice Department argues that subpoenaing two rank-and-file, or “line,” attorneys to seek details about an ongoing investigation would be a violation of the separation of powers.

Reyes has been on the bench for just over a year. Rarely seeming to stop to catch her breath, she repeatedly dressed down DOJ attorney James Gilligan as he sought to explain the department’s position, scolding him at times for interrupting her before continuing a torrid tongue-lashing that DOJ rarely receives from the bench.

She delved into great detail about the nuances of House procedure — like the chamber’s rule against allowing executive branch lawyers to attend depositions — and even asked whether the Judiciary Committee had followed internal rules requiring that the ranking Democrat on the panel be notified of the subpoena to the DOJ attorneys before it was issued.

Yet, perhaps even more remarkably, Reyes seemed inclined to support DOJ’s central argument that the line attorneys cannot be compelled to answer substantive questions from Congress.

They just need to show up and assert privileges on a question-by-question basis, she said — the type of thing, she said, that DOJ demands from others “seven days a week … and twice on Sunday.”

Indeed, while Reyes was withering in her attacks on the DOJ’s position, she was similarly unflinching in her criticism of the House for its stance in the dispute — particularly its claim that line lawyers working on the Hunter Biden tax probe are not entitled to attorney-client privilege.

She also said she thought it absurd for the House to argue that privilege was waived because it was obscuring some crime or fraud within the executive branch.

“I don’t think you’re going to win that fight,” the judge told House Counsel Matthew Berry, saying at one point that she “can’t imagine” ruling for the House on that issue.

At bottom, Reyes said she viewed it as unlikely that the two DOJ attorneys would ultimately be required to answer anything of substance from Congress, but that the department’s effort to prevent them from showing up at all was a brazen affront.

“I imagine that there are hundreds, if not thousands of defense attorneys … who would be happy to hear that DOJ’s position is, if you don’t agree with a subpoena, if you believe it’s unconstitutional or unlawful, you can unilaterally not show up,” the judge said.

Gilligan suggested that the employees subpoenaed in the dispute at issue are current employees, while Navarro and another Trump adviser who was convicted of similar charges, Steve Bannon, were no longer on the government’s payroll when their testimony was demanded.

The judge didn’t seem impressed with that distinction and downplayed the significance of a Trump-era Office of Legal Counsel opinion contending that executive branch employees could defy such subpoenas if Justice Department lawyers were not allowed to be present. “Last time I checked, the Office of Legal Counsel was not the court,” she said.

Reyes also sounded stunned when Gilligan refused to commit to instructing the two subpoenaed lawyers to show up if the House dropped its objection to allowing government counsel to sit in the room. “It would be a different situation,” Gilligan said. “I cannot answer that now. ”Are you kidding me?” the judge responded.

Reyes ultimately ordered the Justice Department to send lawyers to the Capitol next week to confer with Berry and attempt to hammer out a workable agreement. And she said that if the two sides did not work out a deal, she planned to require them to estimate the total cost to the taxpayers of continuing the legal fight, which past precedent suggests could drag out for years.

“I don’t think the taxpayers want to fund a grudge match between the executive and the legislative,” she said. “Bad cases make bad law. … This is a bad, bad case for both of you.”

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Affirmative Action Back Door Power Grab Biden Cartel Censorship Commentary Education Links from other news sources. Reprints from others.

Stories we sometimes miss. Constitutional Scholars, Black Conservatives, Asian Americans praise ruling banning affirmative action.

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Stories we sometimes miss. Constitutional Scholars, Black Bonservatives, Asian Americans praise ruling banning affirmative action.

A collective cheer rang out Thursday from a variety of constitutional scholars, black conservatives and Asian American students and supporters after the U.S. Supreme Court handed down a decision banning race-based admissions practices as unconstitutional.The nation’s highest court on Thursday released a 237-page opinion in Students for Fair Admissions v. President and Fellows of Harvard College in which a 6-3 majority determined that Harvard’s and the University of North Carolina’s admissions policies violate the Equal Protection Clause of the Fourteenth Amendment.

“Today’s victory … belongs to thousands of sleepless high schoolers applying to colleges,” Calvin Yang, a member of Students for Fair Admissions and a rising junior at the University of California Berkeley, said at a news conference Thursday afternoon.

Yang said he was rejected from Harvard University because of its affirmative action policies and he chose to join SFFA to stand up for those who have suffered.

The victory “belongs to those with the last name of Smith or Lee, Chen or Gonzales; it belongs to all of us who deserve a chance. … We can rejoice in the fact that our children will be judged based on their achievements and merits alone,” Yang said at the news conference.

Several black conservatives also chimed in Thursday on social media and in news releases, arguing the decision is a win for the black community.

“Years from now, black students admitted to top schools will say Thank you Supreme Court for a decision that removes the perception the only reason I got in is due to my race. You re-established merit as the core criteria to be considered against a standard bar of excellence,” stated Ian Rowe, a senior fellow at the American Enterprise Institute, on Twitter.

 

The Project 21 Black Leadership Network also published a news release Thursday that cited a parade of scholars praising the decision.

“Using discriminatory practices to supposedly remedy past discrimination was always going to be a recipe for disaster,” said Project 21 Ambassador Christopher Arps. “…Today’s Supreme Court decision is a decisive victory towards Martin Luther King, Jr.’s dream of a colorblind society.”

Project 21 Ambassador Melanie Collette added: “For years, blacks have been told their achievements are not solely their own, and that their skin color somehow played a role in their successes. It’s insulting and demeaning to suggest that blacks couldn’t have done this without affirmative action’s handout.”

The justices ruled in Students for Fair Admissions that the affirmative action policies instituted by these major universities are unconstitutional.

Constitutional scholar GianCarlo Canaparo with the Heritage Foundation also joined the chorus of praise for the decision.

“For too long the court has allowed universities to use stereotypes to racially balance their student bodies. Today that ends,” he told The College Fix via email on Thursday.

Constitutional scholar Adam Feldman, creator of Empirical Scotus, said the ruling has far-reaching implications for both public and private colleges and universities.

“This ruling not only encompasses public universities but through the Harvard decision also includes universities accepting federal funds as a violation of Title VI. Once the Supreme Court granted these cases the most obvious hypothesis was that the Court would overturn affirmative action with the new conservative supermajority,” Feldman told The Fix via email.

Both Feldman and Canaparo said they expect lower courts will experience more litigation as a result of the decision and admissions officials will now use loopholes to continue to administer race-based enrollment decisions.

Universities “may not use race explicitly, but they’ll give advantages and disadvantages to zip codes and high schools where they know they will find high proportions of the races they like and the races they don’t like,” Canaparo said.

Courts will be forced to “draw a line in the sand delineating how race can no longer play a role in university admissions,” Feldman added. “The magnitude of this decision and its expansiveness should not be understated.”

“It is tricky to predict repercussions beyond the decision’s clarity of race based admissions violating the Equal Protection Clause of the 14th Amendment and that this will be applied in all future and pending litigation.”

Chief Justice John Roberts wrote the majority opinion, and was joined by conservative Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett; Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson, the liberal side of the bench, dissented.

In his concurring opinion, Justice Gorsuch quoted Bostock, which determined that employers must exercise sex-blindness when making employment decisions. Even though Title IX – which provides clear protections for sex-specific spaces, including athletics – was not mentioned in the opinion, it is unclear how Justice Gorsuch’s inclusion of Bostock will impact future court decisions involving the Civil Rights Act, some scholars say.

Despite what litigation may follow, students say they are hopeful that the court’s majority opinion will provide a brighter future for students, properly awarding merit rather than judging students based on the color of their skin.

“Today’s decision has started a new chapter in history and the saga of Asian Americans in this country. It marks the promise of a new beginning,” Yang said at Thursday’s news conference.

Another student of color who weighed in Thursday was Grove City College’s Isaac Willour, who wrote a piece for the Lone Conservative headlined “Why I welcome the death of affirmative action.”

“The things that allow non-white Americans to rise in today’s society are the things that allow everyone to rise: ingenuity, dynamism, personal drive, and good choices. To claim that such virtues can be encapsulated or accurately measured by skin color is inherently racist,” wrote Willour, who is also an alumnus of The College Fix.

MORE: Supreme Court strikes down affirmative action in landmark decision

IMAGE: Lazy Llama / Shutterstock

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Biden Cartel California. Commentary Government Overreach Leftist Virtue(!) Life Links from other news sources. Reprints from others.

Living in Florida vs California.

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Living in Florida vs California.

For those who think it’s so great, think about what it would cost you to live in California..

 
If you lived in California instead of Florida, you would:

PAY 8.2% MORE FOR RESTAURANTS

 
 FLORIDA
 CALIFORNIA
Basic meal with drink at inexpensive restaurant$19.03
 
$19.70
 
Fast food combo meal
McDonalds, or similar
$9.60
 
$10.02
 
Bottle of Coca-Cola (11 fl. oz)$2.25
 
$2.59
 
Bottle of water (11 fl. oz)$1.84
 
$2.01
 

 

PAY 3.6% MORE FOR GROCERIES

 
 FLORIDA
 CALIFORNIA
Bread
1 loaf
$3.21
 
$3.79
 
Local cheese (8 oz)$6.22
 
$6.34
 
Milk (1 gallon)$4.26
 
$4.47
 
Eggs
1 dozen
$4.01
 
$4.63
 
Boneless chicken breast (1 lb)$5.09
 
$6.05
 
Apples (1 lb)$2.33
 
$2.14
 
Bananas (1 lb)$0.76
 
$0.86
 
Oranges (1 lb)$1.97
 
$1.77
 
Tomatoes (1 lb)$2.20
 
$2.23
 
Potatoes (1 lb)$1.43
 
$1.42
 
Onions (1 lb)$1.46
 
$1.24
 

 

PAY 22.6% MORE FOR TRANSPORTATION

 
 FLORIDA
 CALIFORNIA
Gasoline (1 gallon)$3.44
 
$4.89
 
Monthly public transit pass$52.60
 
$68.08
 
New Volkswagen Golf 1.4 (standard edition)$24,899.31
 
$25,571.45
 
Taxi trip in downtown area (5 miles)$15.08
 
$17.49
 
 
 

PAY 17.8% MORE FOR HOUSING

 
 FLORIDA
 CALIFORNIA
Internet connection
50 mbps or faster, cable/dsl
$69.94
 
$70.94
 
1-Bedroom apartment in downtown area$1,757.68
 
$2,161.66
 
1-Bedroom apartment outside city center$1,518.55
 
$1,891.75
 
Utilities for two (700 sq ft apartment)
including electric, gas, water, heating
$124.44
 
$151.84
 

PAY 37.9% MORE FOR CHILDCARE

 
 FLORIDA
 CALIFORNIA
Private preschool for 1 child, monthly$960.80
 
$1,413.75
 
Middle school for 1 child, two semesters$14,658.88
 
$18,865.17
 
 

PAY 23.8% MORE FOR ENTERTAINMENT AND SPORTS

 
 FLORIDA
 CALIFORNIA
Domestic/local beer (1 pint)$4.81
 
$6.51
 
Cappuccino in mid-range area$4.36
 
$4.78
 
Pack of cigarettes
Marlboro or similar
$7.52
 
$9.86
 
Monthly membership at local gym$39.38
 
$52.94
 
Movie ticket to theater/cinema$12.34
 
$13.37
 

PAY 6.4% MORE FOR CLOTHING

 
 FLORIDA
 CALIFORNIA
Regular jeans
Levi’s brand
$44.23
 
$49.43
 
Regular dress
from H&M or similar store
$35.60
 
$38.84
 
Running shoes
Nike or Adidas
$82.15
 
$81.58
 
 Page last updated: April 2024

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Categories
Biden Biden Cartel Commentary Corruption Elections Links from other news sources. Reprints from others.

Joe Biden’s Political Origin Story Is Almost Certainly Bogus. It May Land Him In Legal Trouble.

Visits: 17

Joe Biden’s Political Origin Story Is Almost Certainly Bogus. It May Land Him In Legal Trouble.

March 25, 2024

For nearly two decades, President Joe Biden has told a story about why he devoted his life to politics. He repeated the tale, at the risk of facing criminal charges for lying to a federal agent, while speaking to Special Counsel Robert Hur in October 2023.

Fresh out of law school and working as a clerk at a high-powered Wilmington, Delaware, law firm, Biden, in his telling, was tapped to defend a construction company sued by a 23-year-old welder who “lost part of his penis and one of his testicles” to a fire that broke out when he was working inside a chimney at a Delaware City plant. Thanks to Biden’s shrewd legal defense on the construction company’s behalf, the injured man lost the case.

“I wrote this memo. And son of a b—, it prevailed,” Biden told Hur on Oct. 8. “And I looked over at that kid…and I thought, ‘son of a b—, I’m in the wrong business, I’m not made for this.’”

Biden said he was so wracked with guilt that he concocted an excuse to avoid a celebratory lunch with one of the firm’s named partners and walked into the public defender’s office to ask for a job that very day. It’s “the only time I ever lied,” Biden told Hur on Oct. 8. Thus began, according to a New York Times report on the special counsel interview, “a career that would one day take him to the White House.”

But this story is almost certainly a complete work of fiction. Although Biden did work at a law firm tapped to defend a construction company in a negligence suit like the one he described to Hur, the case concluded in 1968, while Biden was still in law school. And the welder won, walking away with $315,000, more than $2.8 million in 2024 dollars.

Biden, whose 1988 presidential campaign collapsed amid allegations that he had plagiarized speeches and a law school paper, has a long record of embellishments and yarn spinning. Over the years, he has told several stories about himself that don’t stand up to scrutiny. Those fibs range from the small and peculiar—he claimed in November 2023 that he was offered a spot on the Naval Academy’s football team—to the mendacious, such as his insistence that he never spoke with his son, Hunter Biden, about the latter’s foreign business dealings.

This report is based on a review of court records obtained from the National Archives as well as contemporaneous news reports and interviews with Biden’s former law firm colleagues and federal court clerks.

Over the years, Biden has told different versions of the welder story. He told Hur that he received several offers from “prestigious law firms,” one of which he landed because of his good looks. Biden says he accepted a job at Prickett, Ward, Burt & Sanders but could not begin work until he passed the bar exam and started as a law clerk at the firm.

In his 2007 memoir, however, Biden says he had very few job prospects after his 1968 graduation from Syracuse University Law School and that Prickett took a chance on him, offering him a role despite his poor grades—including the F he received in a torts class after he was caught plagiarizing.

Regardless, Biden began work at Prickett in 1968 and spent about a year at the firm. It was there, Biden says, that senior partner William Prickett tapped him to draft a motion to dismiss a case against the firm’s client, Catalytic Construction Company, which had been sued by a welder who had been engulfed in flames while working inside a chimney at a Delaware plant.

If there was any “slightly contributory negligence,” Biden said to Hur, “you were out.” So, Biden told Hur that, in his brief, he leveraged the welder’s failure to wear protective gear and argued the worker bore legal responsibility for his misfortune.

The Washington Free Beacon was unable to find any record of Biden working on a case that fits this description or any record of Prickett handling such a case while Biden was in the firm’s employ.

Biden’s story bears a striking resemblance to a case Prickett took on while Biden was still an undergraduate at the University of Delaware. Some of the language Biden used in recounting the incident to Hur matches that found in an article published by the Wilmington News-Journal, which Biden reportedly reads daily.

In May 1962, Joseph Januszewski, a welder for the Catalytic Construction Company, was working inside a chimney at the Stauffer Chemical plant in Delaware. At one point, the News-Journal reported, “sparks from his torch apparently ignited a chemical substance used to clean water” and engulfed his body in flames.

The accident left Januszewski disfigured. Surgeons amputated his leg at the thigh and he was wheelchair bound until his death in 1972.

A Pennsylvanian who was 56 years old at the time of the accident, Januszewski was working inside a “vessel” at the plant when the accident occurred, a detail Biden emphasized during his interview with Hur. Both Januszewski and his wife sued the Catalytic Construction Company in 1964. William Prickett represented Catalytic.

 

Whether Januszewski was left without a penis, as Biden claimed, is unclear. In April 1968, a federal jury sided with Januszewski and awarded him $315,000, a massive sum worth more than $2.8 million in 2024 dollars.

It is extremely unlikely that Biden had any involvement in the case. He was 21 years old when Januszewski filed suit in May 1964. At the time, Biden was completing his junior year at the University of Delaware in Newark. He was finishing his law degree at Syracuse University when a federal jury ruled in Januszewski’s favor four years later, and didn’t start working for Prickett, Ward, Burt & Sanders until at least June 1968, according to his memoir. By then, records show, the case had concluded. No appeal was filed.

There is a possibility that Biden is referring to another civil case tried in the late 1960s in the District Court of Delaware or its Pennsylvania counterpart that saw William Prickett defending the Catalytic Construction Company against a welder and his wife suing over burns sustained while working inside a “vessel” at a company plant.

But if there was such a case, no one can locate it. The District Court of Delaware only keeps records for cases dating back to 1974, a clerk told the Free Beacon. Nor does Prickett, Ward, Burt & Sanders have any records on it. A spokesman for the firm, which is now named Prickett, Jones & Elliot, told the Free Beacon that its records from the Januszewski case and any others in the late 1960s have long been destroyed. William Prickett died in 2014.

“We are familiar with the passage in Mr. Biden’s autobiography discussing our firm and a civil action William Prickett and Mr. Biden worked on,” the spokesman said. “Unfortunately we cannot confirm that the Januszewski matter is the one to which the autobiography refers. Any records from the case, and other matters the firm handled in the late 1960s, are well outside the time period of our records retention policy and have likely been destroyed.”

The Free Beacon obtained a copy of the case records from the National Archives in Washington, D.C. A staff member there could not locate any cases with similar fact patterns.

Spokesmen for the White House did not respond to requests for comment.

This piece has been updated to reflect that Biden was not under oath while speaking to Hur, but could still face criminal charges for lying to a federal agent.

This article was originally from The Free Beacon.

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Biden Pandemic Government Overreach Lies Reprints from others. Tony the Fauch

Four Medications the Government Tried to Restrict During COVID and How to Legally Get Them

Visits: 15

Four Medications the Government Tried to Restrict During COVID and How to Legally Get Them

The following content was sponsored by The Wellness Company on the original site, BREITBART.

Just a few years ago, it would have been unthinkable that our government would ever try to restrict access to certain drugs. The COVID-19 pandemic, however, opened our eyes to just how far our government would go to line the pockets of Big Pharma.

Here are four critical medications that might have been hard to get during the pandemic due to pressure from the government and big medicine:

1. IVERMECTIN

Nobel-prize winning medicine demonized as “horse medicine” by the mainstream media and the FDA, Ivermectin is on the World Health Organization’s list of essential medicines.

Depositphotos

2. HYDROXYCHLOROQUINE

An antiviral that has been used for 50 years for the treatment of various diseases, Hydroxychloroquine was smeared by the left and medical establishment after President Donald Trump advocated for it.

Depositphotos

3. GENERIC Z-PAK

One of the most commonly prescribed antibiotics in history, Z-Pak is also a key component in early treatment protocols and thus came under fire by some in our crooked medical establishment.

Depositphotos

4. BUDESONIDE

Budesonide is an inhaled corticosteroid breathing treatment used to reduce inflammation in the airways and lungs.

Depositphotos

Access to all of these critical prescription medications were limited or restricted, making them difficult for suffering Americans to get.

2024 is the year to be prepared.

We know what the globalists did in 2020, and we know they will do whatever they can to maintain power, which makes 2024 a potentially very dangerous year for Americans.

Warning: The following is their advertisement if not interested, stop here.

Unlike 2020, you don’t have to be caught unprepared, and that’s where the Wellness Company comes in.

The Wellness Company and its great doctors – like Dr. Peter McCullough, Dr. Drew, Dr. Harvey Risch, and Dr. Jim Thorp – are regularly in the media fighting against the broken medical establishment.

Dr. Thorp, one of the nation’s leading critics of corrupt Big Pharma, believes that now – more than ever – people should be prepared for the next pandemic:

I’ve strongly recommended “stockpiling” critical medications including antibiotics since the turn of the century. This has been an incredible investment as many friends, family, and patients have benefited. Now, in the winter of 2024, this recommendation is even more crucial.

The ultimate safeguard for your health.

Be ready for the next crisis. This Contagion Kit contains an assortment of life-saving medications – including ivermectin, and hydroxychloroquine. The Contagion Kit also includes a guidebook to aid in the safe use of these life-saving medications.

This kit is prescription-only – you can’t find it in any store or pharmacy. Simply fill out a short questionnaire after purchase and a trusted Wellness Company doctor will confirm your suitability and issue your prescription, Contagion Kit.

The Wellness Company Contagion Kit contains:

  • Azithromycin (generic Z-Pak) 250 mg – 12 tablets
  • Budesonide 0.5 mg/2 mL – 10 vials (plus nebulizer included)
  • Hydroxychloroquine 200 mg -20 tablets
  • Ivermectin 12mg – 25 tablets
  • 1 Contagion Kit Guidebook written by the Chief Medical Board for safe use.

What people are saying about the Contagion Kit:

This is the perfect emergency kit at the perfect price. Every home should have this for peace of mind. – Rebecca B.

This is absolutely great! I encourage everyone to buy one of these for emergencies!! – Melody H.

Peace of mind. It is an amazing peace of mind to have this kit in case of emergencies and shortages. The Wellness Company did an excellent job of getting this to me in a timely manner and I and thankful to have it. – Phyllis T.

Don’t be caught unprepared for whatever 2024 sends your way!

Never be without these critical drugs. Get the Wellness Company’s Contagion Kit – which contains all four of these drugs – TODAY!

Order the Wellness Company’s Contagion Kit today!

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Biden Cartel California. Commentary Links from other news sources. Reprints from others.

State Farm, California’s largest insurer, announced that it will discontinue coverage for 72,000 homes.

Visits: 7

 

State Farm, California’s largest insurer, announced that it will discontinue coverage for 72,000 homes and apartments starting this summer, a move likely to sharply inflate housing costs for affected residents in a state that’s reeling from a series of destructive recent wildfires.

The Illinois-based insurance giant, which accounts for a fifth of the California home insurance market and is the largest property and auto insurer in the U.S., cited rising costs, increasing catastrophe risk and outdated regulations in declaring it won’t renew California policies for 30,000 homes and 42,000 apartments.

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health,” the company said in a March 20 statement. “State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.”

The announcement comes less than a year after State Farm announced it would not issue new policies in California, citing similar concerns. And it comes as the state’s elected insurance commissioner embarks on a yearlong overhaul of home insurance regulations aimed at calming California’s imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas.

“One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” said Deputy Insurance Commissioner Michael Soller. “State Farm General’s decision today raises serious questions about its financial situation — questions the company must answer to regulators. … We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.” But it was unclear whether the department would launch an investigation into State Farm’s move.

Harvey Rosenfield, the Consumer Watchdog founder who authored the state’s insurance regulation system approved by voters in 1988’s Proposition 103, said the company’s announcement comes just after the state Department of Insurance approved a 20% premium increase for the company. That approval was based on State Farm’s existing number of policy holders, and he said the state should take another look at the rate hike considering the new cancellations.

Whole article is here.

 

 

 

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Back Door Power Grab Commentary Corruption Government Overreach Leftist Virtue(!) Links from other news sources. Reprints from others.

Articles we missed. California Exit Tax & Wealth Tax: What Is it & How it Applies to You.

Visits: 26

 

California is known for having some of the most significant in-state taxes in the country with a 13.3% annual income tax rate. You can checkout anytime you want, but you can never leave.

However, did you know that you might still be taxed even after you leave the state?

Yep! Thanks to the California exit tax legislation, depending on how much money you get from in-state activities, such as investments in real estate or business operations, you could still be treated like a Californian on your next tax return!

Join us as we walk you through the California wealth and exit tax questions, such as “what is the exit tax in california,” how much it is, who it applies to, and a deeper dive into the CA wealth tax proposal and the Assembly Bill 2088.

 

So, what is the California exit tax? The California exit tax explained:

The California exit tax is a one-time tax that must be paid by businesses and individuals who relocate outside of California. The tax is based on the value of the business or individual’s assets, including property, stocks, and other investments.

It forms part of the larger California wealth tax, whereby the state imposes a tax based on its residents’ wealth.

Those who have lived in the state at any point in time in the past and who earn an annual income greater than $30 million are affected by the wealth tax and would have to pay an annual tax on their wealth for as long as 10 years after they have left the state.

How much is the California exit tax?

The amount of the California exit tax is 0.4% of an individuals’ net worth over $30,000,000 in a tax year, no matter where it’s located—within CA, other states within the US, or overseas. This amount is halved to $15,000,000 if a married taxpayer files a separate return to their spouse.

The one caveat is that there is no California exit tax on real estate (but if the real estate is within state lines, it would still be taxed under California Revenue and Tax Code § 17591).

Who has to pay California exit tax?

The exit tax applies to both businesses and individuals who leave California. This includes businesses that move their operations out of state as well as individuals who relocate to another state. It should be noted that the exit tax only applies if you’re moving to another state, not within California.

Why was the California exit tax of 2020 created?

The exit tax is intended to recoup some of the money that California has invested in these businesses and individuals.

For example, if a business owner has received tax breaks or other financial incentives from the state, the exit tax ensures that they will still contribute some money to California‘s economy even after they leave.

The primary reason for the enactment of the exit tax was to close a loophole that allowed people to avoid paying taxes on their capital gains.

Under federal law, capital gains are only taxed when they are realized. This means that if someone buys a stock for $1,000 and it goes up to $10,000, they don’t have to pay taxes on that $9,000 until they sell the stock.

If that person lived in California and then moved to another state before selling the stock, they would never have to pay taxes on that $9,000 in capital gains.

To close this loophole, the Golden State enacted the California wealth and exit tax. Now, anyone who leaves the state is required to pay taxes on their unrealized capital gains.

It’s been criticized by many people, who argue that it is unfair and punitive. They point out that many people who are leaving California are doing so because they can no longer afford to live there.

By California taxing people who leave even more, they say the state is effectively pushing them out.

What’s more, they argue that the exit tax will make it even harder for these businesses and individuals to get back on their feet financially once they’re in their new location.

The California Wealth Tax Proposal in a Nutshell

California is in the midst of a major overhaul of its tax code, which could expand the state’s ability to tax non-residentseven if they sever their connections with the state.

The bill that is causing quite a stir among business and property owners is called the Assembly Bill 2088 (AB 2088), which is, effectively, the California wealth tax proposal.

AB 2088 was introduced in Sacramento in August of 2020, and it proposes a California wealth tax for the first time in the state, affecting individuals who have lived in the state and who make an annual income greater than $30 million.

However, before we delve into the loopholes and exceptions to this ambitious, but potentially consequential, new bill, we must first understand how California’s tax code could impact you, even as a non-resident.

Whether you are a landowner or an entrepreneur with connections to the state, understanding the tax implications is crucial to mitigating the possibility of having to pay some pretty significant taxes.

Starting point: Residency & the California exit tax proposal 2020

First, California’s Franchise Tax Board (FTB) is in charge of setting the requirements for California citizenship, and plays a pivotal part in a California residency audit.

Factors that affect its determination include:

  • your largest residential property’s location
  • Residence of your spouse and children
  • School districts where your children attend
  • Whether your account statements from your credit cards show your residence in California
  • Exemptions you may claim as a homeowner in California
  • Approximately how many days you spend in California each year
  • Whether your California residence is listed on a federal and local tax return
  • Where you vote
  • Where your vehicles are registered

Looking at these factors, you might think that removing yourself physically from the state would result in them no longer applying and saving you a fair amount of money.

There is some truth to this assumption, as the Franchise Tax Board actually cannot base your residence in California if you do not physically reside within your home in California for most of the year.

This is especially convenient for people who frequently travel or, perhaps, own other residential property outside of California.

Still, even if you change addresses, remove California on your tax returns, and move across the country, you could still be impacted by the California tax code when it comes to taxes.

The above factors listed by the FTB are to be used as a guideline; they are certainly not the only things to consider.

A common fallacy: people frequently believe that moving out of California will make them exempt from paying individual income taxes. This is not necessarily the case, and it would be wrong to assume relocation is a blanket solution.

Check Out Our Complete Residency Audit Guide for More Help

Requirements for the CA exit tax 2020: do they apply to you?

California looks at two major factors when determining whether an individual’s income is taxable and how that then applies to the California exit tax proposal 2020:

  1. Do you generate income from sources within the state? (e.g. real estate investments, business investments in California);
  2. Does your business operate within state lines? (e.g. facilities, employees, etc.)

Let’s look at these two in more detail and how they apply to the “leaving California tax”, as it’s sometimes known…

1. Income-generating sources from within the state

According to the California Revenue and Tax Code § 17591any financial ties you have to California follow you to your new state of residence.

In other words, if you have invested in or own real estate within California, you still need to pay in-state tax on that real estate, even if you technically reside in another state.

This tax code applies even at the time of sale of that real estate, because it falls under the category of California-source income”—income derived from sources within California state lines. 

FTB Publication 1031 elaborates further on the types of real estate and property investments that are subject to California nonresident taxes:

Community property income

For individuals with spouses who are California residents, the spouse’s income is considered community property and is, therefore, split equally by the couple.

The community property share of that income is taxable to each spouse, even if one of the spouses lives outside of California and has never lived in the state before.

Real estate sales

Any gain (or loss) from selling real estate located in the state of California is taxable under California’s tax code.

This applies even if the owner is a non-resident who has never lived within the state. The location of the property controls whether the tax applies.

2. Business Operations and Activities in California as a Non-resident

Another situation to be wary of is owning or operating a business within California state lines as a non-resident.

Many business owners falsely believe that because they live outside of California or conduct part of their business operations out-of-state that this exempts them from California taxes.

Under the Constitution, a business’s income may be taxed by the percentage of business activity conducted within a given state.

As applied to California, if a business’s manufacturing facilities are located in Nevada but its workforce, such as remote and/or in-person workers, and corporate offices are in Los Angeles, then that business has demonstrated a sufficient “nexus” or connection with California.

Thus, it is subject to the state’s taxes, and the exit tax in California applies.

If a business demonstrates a sufficient connection or “nexus” to the state of California, it may be subject to the state’s taxes, regardless of whether some of its operations or employees live out of state.

Still, this does not necessarily mean that the California taxes will apply to that business’s total income, especially if only a fraction of the business’s total revenue is derived from California sources.

Say, for example, a business earns $10 million in annual income with 40% from California consumers and 60% from Nevada consumers. California will only be able to tax $4 million of the total $10 million income, because that is the proportion of California-sourced income.

Types of non-resident businesses and the exit tax in California

FTB Publication 1031 elaborates further on the types of business activities that are subject to California non-resident taxes:

  • Salary and wages: To non-residents, wages and salaries for services performed in California are taxable, regardless of the location of the employer or employee.
  • Income from business: Income from a business, trade, or profession conducted in the state may be taxed on non-residents.

Unsure How This Applies To You? Give Us A Call

Foreseeable Developments to the California Exit Tax 2020 Proposal—Assembly Bill 2088

In terms of whether the California exit tax 2020 proposal bill will actually stand the test of litigation, the likelihood of courts nullifying the law, should it be enacted, is high.

The exit tax clearly violates the constitutional right to travel, because it burdens individuals from:

  1. Moving to the state of California in fear that the state tax will follow them even after they leave the state, and
  2. Moving out of the state for the similar reason of having to continue to pay California taxes while also navigating the state and local taxes of their new residence.

To provide some context to why courts will likely find the tax unconstitutional, it is important to first understand the levels of “scrutiny” or critical inspection of the law that will be applied.

Since the law affects a fundamental constitutional right—the right to travel—strict scrutiny will apply here.

Strict scrutiny of the “leaving California tax

Under strict scrutiny, the burden is on the legislature to show that the law was enacted to further a “compelling government interest” and the law is “narrowly tailored” to achieve that interest.

In other words, the question revolves around whether the law is essential or necessary and whether there are alternative, less-intrusive methods of attaining the same result.

The state of California will likely argue that the “compelling” interest is to mitigate economic inequality and the disparity between classes. This is certainly an important and necessary issue to address.

However, coming up with an argument to show that the exit tax is “narrowly tailored” in that no other alternatives for achieving the purpose are available will be an uphill battle.

Overall, because the bill will impact a fundamental constitutional right and there are likely many other ways to go about addressing the compelling interest it aims to address, the likelihood of the exit tax withstanding strict scrutiny is slim.

Nevertheless, litigating the issue will take time, and it’s important to prepare for any impact the bill may have upon being enacted.

Avoiding the California exodus tax: what can you do?

The first step to approaching this California tax for leaving state is to consult a licensed tax attorney and explore your options.

Depending on your situation, taxes may apply to you in ways you might never anticipate.

Further, having a professional explain to you what parts of your income, business operations and activities, and wealth are taxable under California law will help to ensure that you do not suffer from unfortunate surprises on your next tax statement.

Still Need Assistance? Give Us A Call

Key takeaways on the California wealth and exit tax

The AB 2088 Bill is responsible for the California wealth tax over 10 years ruling, whereby if you leave California, the State can tax you for up to 10 years.

As part of this California 10 year tax, the exit tax is 0.4% of an individuals’ net worth over $30,000,000 in a tax year, which is halved if you have a spouse filing a separate tax return.

However, this all depends on your residency status, which can be a complicated matter. Get in touch with our team if you need help with residency or anything to do with the California exit tax.

 

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