
Originally Posted by
Melonie
Well this may have to do with a number of announcements that were made last week or two that will potentially impact the 'disposable income' of club customers ...
The US congress refused to extend federal long term unemployment checks beyond the existing 99 week limit during the 'last' vote on the matter taken last week ... which will mean that checks will stop flowing to > 1 million long term unemployed this week, many of whom are located in California
Gov. Schwarzenegger's umpteenth state budget was submitted two weeks ago ... and with the inability of the state legislature to pass major additional state income tax increases, it now appears that tens of thousands of California public sector employees ( like teachers, social welfare workers, cops, park rangers etc.) are now slated to 'lose' their jobs. The state budget proposal also includes the elimination of California state tax credits to businesses, which will lower the profit margins of affected small businesses ( thus lowering the incomes of those small business owners ).
Of particular interest to Northern California, two weeks ago it became more or less clear that legalization of pot for recreational use will appear on the november ballot ... with poll data showing it is likely to pass. However, this will also result in the legalization, registration, and taxation of California grown pot. This in turn will result in significantly lower 'controlled' pot prices ... thus significantly lower profits for pot growers ... with those newly registered profits now becoming fully subject to federal and California business and/or personal income taxes. This of course will 'drain' billions of currently undocumented dollars out of the Northern California economy, diverting those dollars into federal and state tax coffers instead.
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