California Budget: Raising Taxes Indefensible While Killing Solvent Gold Mining Industry, Says Gold Pan California

Congressman McClintock Slams Legislature, Says Destroying Jobs is Insane

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Jun 23, 2011, 04:26 ET

CONCORD, Calif., June 23, 2011 /PRNewswire/ -- Gold Pan California (www.goldpancalifornia.com), a gold mining supply shop located in the Bay Area, just got a boost from Washington, D.C. to help fend off erroneous Legislation which is now tangled in the ongoing California budget negotiations.

While Governor Brown and Democratic Legislators battle Republicans to raise taxes, Congressman Tom McClintock (R-CA) has asked for Governor Brown's assistance to squash a Democrat-approved piece of Legislation which will increase California's deficit and have devastating long term effects to the State.

"Depriving the State from yet another source of revenue while breaking the back of its economy with higher taxes is indefensible," states McClintock.

In an underhanded proposition by a few Indian tribes and environmental extremists, an erroneous $1.8 Million "budget cut" was suggested to be made to a non-existent "budget deficit" in the suction dredge gold mining budget.

Although erroneous, the all-Democrat 'budget saving' legislation will cost the State $23 Million annually, and will erase 4,000 miners' jobs plus 15,000 additional inter-related jobs. It will also deal a permanent death blow to the suction dredge gold mining industry in California.

In the communication to Governor Brown regarding the legislation, McClintock stated "Destroying four thousand jobs when California is suffering from 11.9 percent unemployment is simply insane."

While the miners and McClintock are trying to save the California industry and help shore up the budget, anti-mining foes have submitted grant requests for $9 Million to lease industrial-sized cutter-head dredges from a Canadian company to suck up sediment in California reservoirs.

"The utter hypocrisy is staggering," says Mike Dunn, owner of Gold Pan California. "They want to stop individuals from diving for gold, yet they want to mechanically gouge out the river bottoms with gargantuan machines. And, they want the taxpayers to support a Canadian manufacturer, when Keene and Proline are the two largest dredge manufacturers in America, and both businesses are located in California," says Dunn.

The Democrats are battling Republicans to raise taxes, supposedly to balance the budget deficit. But when the Legislature thinks its a good idea to kill California's entirely solvent gold mining industry, erase 4,000 direct jobs plus 15,000 inter-related jobs, and increase the State deficit by $23 Million, meanwhile, send our tax dollars to a Canadian manufacturer for equipment used in California, it doesn't seem like raising taxes will balance any part of California's budget deficit.

Congressman McClintock's warning letter summed up the legislation attempt precisely; this is insane.

On a bright note, if the Governor removes this harmful legislation, the miners' contribution of $23 Million can be added to the Revenue side of the new budget, since it was entirely omitted in the first budget proposal which the Governor vetoed last week.

About Gold Pan California:

The company was founded in 2008 by Mike Dunn, an international gold mining specialist who has been suction gold dredge mining for 33 years.

For more information visit http://www.goldpancalifornia.com

Reference: link to Congressman McClintock's letter (PDF):

https://goldpancalifornia.pinnaclecart.com/images/custom/Letter_GovBrown_OpposeSuctionDredgingBan_110617.pdf

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SOURCE Gold Pan California