Wednesday, October 3, 2012

Charlie Munger's Daughter Wants Higher Taxes in California

Charlie Munger's kids are on a spending rampage to influence California's government. Munger is the billionaire partner of Warren Buffett. The kids have two different programs they are trying to influence. Munger's daughter, Molly Munger, seems to be the more aggressive one as far as wanting the state to grab deeper into the pockets of Californians.

Reuters reports:
 California Governor Jerry Brown has a problem. Call it the Munger problem.

They're scions of a billionaire financier, one a liberal lawyer in Los Angeles and the other a conservative scientist in the Bay Area. Neither claims to enjoy politics.

Yet Molly Munger and Charles Munger Jr., children of Warren Buffett's business partner, Charles Munger, Sr., have together become Brown's worst nightmare as the November election approaches.

Molly Munger has spent almost $30 million on a referendum to raise taxes to fund public schools, a more aggressive alternative to a tax rise proposed by Brown for the state's overall budget. Charles Munger Jr. has ponied up $5 million and counting for measures including a campaign finance reform that would eviscerate the political power of the state's labor unions...

 Think of them as the anti-Kochs: where billionaire industrialist brothers David and Charles Koch fund right wing causes with a unified zeal, Charles and Molly Munger each go their own way, united only in their refusal to be cowed by the political establishment.

"This is not some vast Munger family conspiracy," says Charles.

"I am very fond of Charles," says Molly. "He is my brother. He is dear to my heart. But people who are dear to us are not always people we agree with."
Molly appears to be a typical rich kid who has no clue how the economy works or why governments always fail at their tasks. The new tax she is in favor of is at the core of Proposition 38 which will be on the November ballot in California.

Wikipedia informs:
Supporters of Proposition 38 refer to it as the "Our Children, Our Future: Local Schools and Early Education Investment Act".

If enacted, Proposition 38 will:

Increase state income tax rates for most Californians, resulting in increased revenues to the state of about $10 billion a year.

The state income tax increase would end after 12 years, unless voters reauthorize it.
Earmark most of the new revenue of $10 billion for public school districts and early childhood development programs. During first four years, allocates 60% of revenues to K–12 schools, 30% to repaying state debt, and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K–12 schools, 15% to early childhood programs.
 Increases personal income tax rates on annual earnings over $7,316 using sliding scale from .4% for lowest individual earners to 2.2% for individuals earning over $2.5 million, for twelve years.
Does Molly have any clue as to what type of "education" the California school system delivers? Has she ever spent any serious time in central LA ?  And what's all this about her wanting taxpayers to fork over even more money for such an absurd project in a state that will go bankrupt without the help of Ben Bernanke created inflation? Doesn't she think California taxpayers have been abused enough?

Sometimes a child of an oligarch can be worse than the oligarch himself. In a state that is crumbling from mad interventionist schemes, this daughter of an oligarch wants to pile yet another mad scheme on the citizens of the state---and make them pay for it.  Molly use your own your father's money for this crazed scheme and keep the rest of us out of it.


  1. There seems to be a disconnect between the rich and the poor. The rich want more and the poor say are they crazy? We can't make it now and they want more?
    My advice to the rich is try to live on two thousand a month and see how far you get. Rent, food, bills, transportation, fines, licenses, it all has to fit. If you can do it for a year. I will listen to your proposals for tax increases.
    Walk a mile in their shoes big shots!

  2. 30 million to influence legislation? Talk about lack of critical thinking, dumb broad could start her own institute, technical/trade school, business, what have one, but no take the stupid route.

  3. Economic policies of progressive government has always been the tool of the oligarch. Without it, most would lose their wealth in a very short time. In my view the cruelest people on this planet are those that know that the system is broken but don't give a damn enough to want to fix it and instead just want to throw more money at it and forget about it.

  4. Hmm. Maybe managers have a duty to their shareholders to play the game?