California update: tax rates going up for all, and NUMMI auto plant closing

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txrandom

Diamond Member
Aug 15, 2004
3,773
0
71
Damnit, now I have to put up with more Californians coming to Texas. Go back to your amazing state.
 
Aug 23, 2000
15,511
1
81
Originally posted by: marincounty
Originally posted by: OCguy
Originally posted by: marincounty
Originally posted by: OCguy
Originally posted by: marincounty
Maybe the not liberal Governor shouldn't have cut taxes as his first move, thus blowing a hole in the budget.

I believe GM pulling out of Nummi first was the impetus for closing it. Thank you GM.


Why dont you NorCal hippies just voluntarily pay more taxes? I dont understand why people who love to pay taxes have to wait for the government to require it.

We need to cut minimum wage to get jobs back here, cut taxes to get the businesses back here, and cut spending by even more.

Cut minimum wage? What, that's holding back the economy? Illegals make $10 an hour here.

It is making us pay out more in UI benefits, and it is causing out sourcing. It is also causing companys who do not want to pay a warehouse employee or customer service rep without a diploma and no englas $10/hr to pack up and leave.

You still didnt answer the question. Why dont you donate more of your check to CA if you like paying taxes?
When did I say I liked paying taxes? But paying taxes is the cost of living in a decent society. Don't like taxes? Move somewhere where they are lower, like Texas or Nevada.
Enjoy all of the benefits of the lower taxes, including your lower salary.

I agree spending and state taxes should be cut, but I'm sure we differ on what should be cut.

Prop 13 needs to be modified, so that corps cannot avoid taxes with tax avoidance schemes, thus shifting taxes to homeowners.

The good news: I'm sure Southern California pays way more taxes than us hippies in Northern California.

Yup Texas is so horrible and bad with no income tax and affordable housing. You seem to equate salary with how rich you are. You may make $100,000 a year in Cali, but when you have to pay $80,000 a year just to pay for housing, food, taxes, and living, you don't really have much left.
In Texas I can make $80K a year and only spend $40K a year on the above things and guess who comes out on top.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Yup Texas is so horrible and bad with no income tax and affordable housing.
It's true, it's like saying people in NYC make a lot of money. That's great, it costs a thousand bucks a square foot, too.
 

sandorski

No Lifer
Oct 10, 1999
70,141
5,662
126
Originally posted by: MotF Bane
Originally posted by: sandorski
There's only 1 Way to Balance a Budget: Cut Spend AND Raise Taxes. Anyone saying otherwise is Wrong.

No, you can cut spending, AND/OR raise taxes. There are three choices, not one. That's simple logic anyone with a brain should be able to understand.

Your attempt to Balance the Budget has Failed...Play Again?
 

MotF Bane

No Lifer
Dec 22, 2006
60,865
10
0
Originally posted by: sandorski
Originally posted by: MotF Bane
Originally posted by: sandorski
There's only 1 Way to Balance a Budget: Cut Spend AND Raise Taxes. Anyone saying otherwise is Wrong.

No, you can cut spending, AND/OR raise taxes. There are three choices, not one. That's simple logic anyone with a brain should be able to understand.

Your attempt to Balance the Budget has Failed...Play Again?

No such attempt has Been made to Sufficient Values.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,427
8,388
126
all i know is that more californians are leaving their state than ever before.
 

Fern

Elite Member
Sep 30, 2003
26,907
173
106
Originally posted by: miketheidiot
Originally posted by: spidey07
One sure fire way to make business and people flee your state is to raise taxes. It's a downward spiral. Higher taxes = less tax revenue, raise them again = even less revenue.

this is why places like the dakotas have people rushing to live there, because the taxes are so low. :roll:

Try Nevada, Arizona, Utah and Idaho.

Nevada has no personal or corprate income tax, and they are actively marketing to get CA people and businesses to relocate there.

CA tax policy is most definately one of the reasons for their dimishing tax base.

Fern

 

Craig234

Lifer
May 1, 2006
38,548
349
126
Originally posted by: Fern
Originally posted by: miketheidiot
Originally posted by: spidey07
One sure fire way to make business and people flee your state is to raise taxes. It's a downward spiral. Higher taxes = less tax revenue, raise them again = even less revenue.

this is why places like the dakotas have people rushing to live there, because the taxes are so low. :roll:

Try Nevada, Arizona, Utah and Idaho.

Nevada has no personal or corprate income tax, and they are actively marketing to get CA people and businesses to relocate there.

They also have legal gambling, ligal sex as a product, the biggest entertainment complex in the nation - whose economy is larger per capita, again, CA or NV?

Why do they need to actively market with all those great advantages? I guess there's no one left in CA now with all those advantages in NV.

CA tax policy is most definately one of the reasons for their dimishing tax base.[/quote]

Yes, cutting tax rates always increases tax revenues. Thank you, Mr. Laffer. Oh, except that studies show the actual return from the benefits is about 20 cents per dollar of tax cut.
 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
76
The other day I drove east of my house about 2 miles primarily to see if there was life east of 101... As I entered Rancho Santa Fe my car radio had a piece about all the economic problems faced by California.... I looked around. But, I couldn't tell from this vantage point... didn't look like any problems going on here... So I drove back home... Having seen life I rested easy knowing that.. but the radio kept on about all these problems.. so I drove south on 101.. through Del Mar to La Jolla... Nothing untoward going on there... everyone seems quite at ease with out a care in the world... I stopped at the University (UCSD) and went up to the Economics dept to see what they thought... most were out of town.. but this fellow Betts was involved in a round table discussion with all sorts of brilliant folks... I didn't see any round tables so figured well... whatever.. So, being a sort of 'friend' I poked my head in and listened to these Economic Guru types... Not a bit about California's economic issues... Value of water, price of oil... etc.. but, unless I missed it... nothing about a pending crisis or one in the now... Oh.. my.. a radio broadcast from the future... hmmm.
Is there a crisis in California? And if so what are we doing about it? Better yet... should we do anything about it.. which led me to thinking. Why not cut all these programs that no one seems to use... What is this welfare stuff anyhow... I didn't see one person who needed welfare... not one.. and I drove over 20 miles that day.. Illegal aliens... nope... they don't exist... I looked.. What is all this educational cuts the radio mentioned... The lottery pays for that... so what's the issue there? Cuts to the California dept of forestry... We have fires in the same place every year.. who cares.. no one lives there and if they do why? Cut it completely... Auto registration fees... increase them 10 fold.. I don't care.. makes sense to me.. People should pay to drive on these beautiful roads and watch the sunset. Just don't freaking park in front of my house damit... Use that money to pay for what ever the crisis is... Raise taxes I heard as an option by some voice on the radio... ok.. raise them... folks should pay big bucks to live here... well.. don't repeal prop 13 cuz I've lived here since '70 and hardly pay any property tax... besides the kids are all growed up... close the dam schools till we get more kids...
It is all a farce... Calyforyouna don't have no crisis at all... just go look around like I did...

 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
76
Originally posted by: Craig234
Originally posted by: Skoorb
CA has a spending problem. It has been told this but does nothing to fix it. Even many of its strong supporters deny it but the math doesn't care about them and they are being shown as wrong. They can continue to deny what's happening all they like, but the math marches on regardless. As long as people are blind to California's huge and ridiculous government waste they will continue to get this wrong, they will blame the republicans, bush, their small penises, whatever. We have the same problem in NY state. The government is an uncureable cancer here with no shame and no ability to shrink itself. It is upheld by people with no shame and no ability to put off some pleasure now for less pain later, so things inexorably get worse.

Previous Governor had a vehicle license fee that would balance the budget. Voters fell for a right-wing campaignand recalled him. Schwarzeneggar repealed the fee and got deficits.

But, now Issa is Minority Leader of the House Government Oversight Committee.... so it worked... That was the objective, no?
We simply need more cars... to break it even... ok. raise it a bit if you must... Surplus sounds better anyhow.:Q
 

sandorski

No Lifer
Oct 10, 1999
70,141
5,662
126
Originally posted by: MotF Bane
Originally posted by: sandorski
Originally posted by: MotF Bane
Originally posted by: sandorski
There's only 1 Way to Balance a Budget: Cut Spend AND Raise Taxes. Anyone saying otherwise is Wrong.

No, you can cut spending, AND/OR raise taxes. There are three choices, not one. That's simple logic anyone with a brain should be able to understand.

Your attempt to Balance the Budget has Failed...Play Again?

No such attempt has Been made to Sufficient Values.

Clinton and the Canadian Federal Government are 2 examples of Spending Cuts/Tax Increases to Balance Budget. There's probably more, but I'm too lazy to Google.
 

SigArms08

Member
Apr 16, 2008
181
0
0
Originally posted by: marincounty
Maybe the not liberal Governor shouldn't have cut taxes as his first move, thus blowing a hole in the budget.

I believe GM pulling out of Nummi first was the impetus for closing it. Thank you GM.

Ah, just to look to the revenue stream, but have only contempt for the product lines. Last time I was out there, didn't see a heck of a lot of Pontiac Vibes or other GM vehicles driving around. Also seems like people out there hold GM in very low regards, so why are you sarcastically "thanking" GM? Do they owe Cali enormous favors?

 

alphatarget1

Diamond Member
Dec 9, 2001
5,710
0
76
Originally posted by: SigArms08
Originally posted by: marincounty
Maybe the not liberal Governor shouldn't have cut taxes as his first move, thus blowing a hole in the budget.

I believe GM pulling out of Nummi first was the impetus for closing it. Thank you GM.

Ah, just to look to the revenue stream, but have only contempt for the product lines. Last time I was out there, didn't see a heck of a lot of Pontiac Vibes or other GM vehicles driving around. Also seems like people out there hold GM in very low regards, so why are you sarcastically "thanking" GM? Do they owe Cali enormous favors?

I hardly saw any domestics in the Bay Area when I was there.
 

DucatiMonster696

Diamond Member
Aug 13, 2009
4,269
1
71
Originally posted by: Craig234
Originally posted by: Skoorb
CA has a spending problem. It has been told this but does nothing to fix it. Even many of its strong supporters deny it but the math doesn't care about them and they are being shown as wrong. They can continue to deny what's happening all they like, but the math marches on regardless. As long as people are blind to California's huge and ridiculous government waste they will continue to get this wrong, they will blame the republicans, bush, their small penises, whatever. We have the same problem in NY state. The government is an uncureable cancer here with no shame and no ability to shrink itself. It is upheld by people with no shame and no ability to put off some pleasure now for less pain later, so things inexorably get worse.

Previous Governor had a vehicle license fee that would balance the budget. Voters fell for a right-wing campaignand recalled him. Schwarzeneggar repealed the fee and got deficits.

BS....That fee would of never balanced a budget that is growing and growing with overburdening social programs and pet projects. All it would of done was put off the inevitable. The voters rightfully voted down this DMV tax hike because they wanted the legislature to find other methods besides taxing people to death. Now with California housing 1/3rd of the welfare recipients in the nation this isn't helping along with the massive numbers of illegal aliens sapping resources away from the state. Add in the anti-business nature of the state with all its environmental, pro-union stances, and other meausres including massive tax rates California is in dire straights.
 
Feb 19, 2001
20,158
20
81
Originally posted by: sandorski
Originally posted by: MotF Bane
Originally posted by: sandorski
Originally posted by: MotF Bane
Originally posted by: sandorski
There's only 1 Way to Balance a Budget: Cut Spend AND Raise Taxes. Anyone saying otherwise is Wrong.

No, you can cut spending, AND/OR raise taxes. There are three choices, not one. That's simple logic anyone with a brain should be able to understand.

Your attempt to Balance the Budget has Failed...Play Again?

No such attempt has Been made to Sufficient Values.

Clinton and the Canadian Federal Government are 2 examples of Spending Cuts/Tax Increases to Balance Budget. There's probably more, but I'm too lazy to Google.

Ok, here's the problem:

Basic human life. You want a bunch of things. We all want nice computers, nice cars, nice gadgets, nice homes, a great family life, provide for kids, etc.

What's the solution? Make a lot of money. Not everyone can be CEO. Not everyone can be a director at a nice company or even a manager. You can't tell everyone to go make more money (i.e. raise taxes) to satisfy their needs. It might not work. But one thing that works for sure is spending within your income. IF oyu make 250,000 yes you would be comfortable and well off in buying that multi million dollar home in CA. But if you make $40k, maybe you should look at a less expensive neighborhood and you should think twice before buying that new SUV when your garage has 3 cars already.

You can make life better three ways. You can make more money or cut spending or do both.

Well we've raised taxes in CA already. Now let's cut spending. The reason CA's tax revenues fluctuate so heavily is because they're so heavily dependent on corporate taxes, business taxes and the taxes on the wealthy. As I quote again...

California will only generate more tax revenues through new businesses and jobs, and that will require a tax rate much lower than its top marginal rate of 10.55%. With 50% of Golden State income tax revenues coming from the richest 1% of residents, the state needs lower rates to avoid revenue boom and bust. The liberal obsession with income redistribution has destroyed California?s tax base. (Memo to President Obama, if he?s paying attention.)
 
Feb 19, 2001
20,158
20
81
Originally posted by: Craig234
Previous Governor had a vehicle license fee that would balance the budget. Voters fell for a right-wing campaignand recalled him. Schwarzeneggar repealed the fee and got deficits.

Why do you always talk about this like the vehicle license fee at an outrageous rate would've saved the state. CA had a reasonable licensing fee before. Davis jacked it up to outrageous rates (compare to other states). We brought it back, but like others pointed out this would've done NOTHING to curb California's problem. We have a spending problem. You can pad your emergency funds right now but there's a reason WHY in times of trouble CA's tax revenue drops like no other. It's because our tax burden is on sources that fluctuate greatly (i.e. businesses and wealthy individuals). Moreover look at how much we spend on prisons, unionized labor (ahem prison guards), etc. Even your liberal buddy senseamp pushed for cutting UC/CSU funding. So stop acting like we need to raise taxes even more when CA's taxes puts us in the top 5 states.
 

Craig234

Lifer
May 1, 2006
38,548
349
126
Link
Originally posted by: DLeRium
Originally posted by: Craig234
Previous Governor had a vehicle license fee that would balance the budget. Voters fell for a right-wing campaignand recalled him. Schwarzeneggar repealed the fee and got deficits.

Why do you always talk about this like the vehicle license fee at an outrageous rate would've saved the state. CA had a reasonable licensing fee before. Davis jacked it up to outrageous rates (compare to other states). We brought it back, but like others pointed out this would've done NOTHING to curb California's problem. We have a spending problem. You can pad your emergency funds right now but there's a reason WHY in times of trouble CA's tax revenue drops like no other. It's because our tax burden is on sources that fluctuate greatly (i.e. businesses and wealthy individuals). Moreover look at how much we spend on prisons, unionized labor (ahem prison guards), etc. Even your liberal buddy senseamp pushed for cutting UC/CSU funding. So stop acting like we need to raise taxes even more when CA's taxes puts us in the top 5 states.

There are two posts to reply to - I'll pick yours, since yours is the dishonest history of the fee and the more important to correct IMO.

The fee had been 2% for 60 years, and worked fine; during the dot com boom the state had a surplus, and cut the fee by two thirds, but left in a provision that if the economy did worse, the fee's reduction would end and the fee would return to the normal 2% level. That's all Davis did, when the dot com crash happened, it wasn't some new tax as you say out of the blue, but the end of a temporary tax reduction when the economy no longer provided a budget surplus.

But first a clarification that the restoration of the vehicle license fee would have balanced the budget deficits from when Davis restored it after the dot com crash when revenues fell, and for the several years after of multi-bilionan dollar deficits, until the current economic crash.

While the fee would no longer balance the budget in the current crisis with a huge deficit, it would still help as one part of the balancing.

Appended is an LA Times editorial from two years ago, before the economic crash had happened but while deficits were already a big issue.

Link

The defining issue of the 2003 recall was Gov. Gray Davis' tripling of the car tax, more officially known as the Vehicle License Fee. The defining issue of Arnold Schwarzenegger's successful campaign to unseat Davis was his promised rollback of said car tax. Now the defining and perpetual cloud over the Schwarzenegger administration has become the budget's operating deficit and the amount by which it carries over from one year to the next, or -- as is the case this year -- the amount by which it requires slashing state programs.

And that amount is, of course, just about the same amount as the money lost from cutting -- or, if you prefer, reinstating -- the car tax. How much? $3.8 billion...
So the Legislature cut the car tax from 2% to 0.65% of vehicle value. Why not? No one liked the tax anyway, and it was getting in the way of car sales, especially -- since the tax is pegged to value -- of luxury car sales. As for the money that would no longer come in to pay for city and county operations, well, so many new dot-com millionaires were paying income and property taxes that the state easily had the cash to make up for the loss. And those good time, certainly, would go on forever.

By the way, who cut the car tax? GOP Gov. Pete Wilson? Sure, he got the ball rolling. But it was Davis, the Democrat acting like a good, taxpayer-respecting Republican, who rejected his fellow Democrats' demands for money for new programs and instead passed along the tax cut to car owners. The vehicle license fee was cut to one-third its size. And, oh, by the way, there was a provision that allowed Sacramento to restore the fee to its earlier 2% in the event the economy faltered and the tax money was needed to balance the budget. Just in case.

So there California was, in the midst of the dot-com hangover, on June 20, 2003, with a budget precariously out of balance, a gubernatorial recall threatened and a decision to by Davis' finance director to make the state's general fund whole by removing the offset against the car tax. Drivers, that year, would have to pay the car tax themselves, just as planned in the original offset legislation. Anyone here have a problem with that?

Well. Yes. There was a problem with that, as any AM radio talk show host would have been happy to explain.

 

IndyColtsFan

Lifer
Sep 22, 2007
33,656
687
126
Originally posted by: DLeRium
Originally posted by: Craig234
Previous Governor had a vehicle license fee that would balance the budget. Voters fell for a right-wing campaignand recalled him. Schwarzeneggar repealed the fee and got deficits.

Why do you always talk about this like the vehicle license fee at an outrageous rate would've saved the state. CA had a reasonable licensing fee before. Davis jacked it up to outrageous rates (compare to other states). We brought it back, but like others pointed out this would've done NOTHING to curb California's problem. We have a spending problem. You can pad your emergency funds right now but there's a reason WHY in times of trouble CA's tax revenue drops like no other. It's because our tax burden is on sources that fluctuate greatly (i.e. businesses and wealthy individuals). Moreover look at how much we spend on prisons, unionized labor (ahem prison guards), etc. Even your liberal buddy senseamp pushed for cutting UC/CSU funding. So stop acting like we need to raise taxes even more when CA's taxes puts us in the top 5 states.

Because he is lying. As I showed in another post, Craig claimed reinstating the fee "alone" would balance the budget (his words, not mine). At the time, Gray Davis wanted to do this. What Craig neglected to mention was that the fee was being tripled and even at the rate was only going to raise roughly $4 billion. Davis was looking at a budget deficit on the order of $38 billion (IIRC; I will have to revisit the article) so the very idea that the fee "alone" (whether it was tripled or not) would solve the budget crisis is a lie. Of course he refused to address that point.


EDIT: The thread I am referring to is here, with some of the relevant quotes below:

Originally posted by: blanghorst
Originally posted by: Craig234
But what are these crazy tax hikes Democrats want as part of the budget?

Back in the boom days of the dot com era, the state revenues were so high that the car licesning fee was *temporarily* suspended becaue it wasn't needed.

When the dot com crash happened and the state faced a deficit, one of the measures taken by Democratic Gov. Davis was to end the year by year temporary fee suspension.

That fee alone would have balanced the budget - but Republicans recalled him over it and instead gave the state the massive deficit.



Please link to your source, as I am interested. What I see is that he tried to TRIPLE the licensing fee. Not just "end the fee suspension" as you claim.

California vehicle license fee to triple

Not to mention this was expected to raise $4 billion, but the budget deficit was projected to be $38 billion. How exactly would "that fee alone" cover the budget deficit?
 

Paddington

Senior member
Jun 26, 2006
538
0
0
Originally posted by: SigArms08
Originally posted by: marincounty
Maybe the not liberal Governor shouldn't have cut taxes as his first move, thus blowing a hole in the budget.

I believe GM pulling out of Nummi first was the impetus for closing it. Thank you GM.

Ah, just to look to the revenue stream, but have only contempt for the product lines. Last time I was out there, didn't see a heck of a lot of Pontiac Vibes or other GM vehicles driving around. Also seems like people out there hold GM in very low regards, so why are you sarcastically "thanking" GM? Do they owe Cali enormous favors?

California fought GM (as well as Toyota and other automakers) tooth and nail to impose its own emission standards. You think GM owes California a favor? :laugh:

Arnold Schwarzeneggar looks a bit like Nero now, when he was fiddling around with environmentalist bullshit, sticking a finger in the eye of Hummer's maker when he himself had popularized Hummer for civillians, while California's economy, schools, and infrastructure crumbled all around him.

But GM has little role to play in this anyway. The most recent production at the NUMMI plant are Toyota Corolla, Toyota Tacoma, and Pontiac Vibe (itself a modified Corolla). Pontiac no longer exists. GM's part ownership of NUMMI was liquidated in the bankruptcy. The production and ownership now is basically all Toyota. You think they want to continue production in one of the most high cost, anti-business parts of the USA with a unionized plant in the worst auto market in decades? Get real. Maybe you bought all that horseshit about how Toyota is more American than American in their advertising the last 10 years, but Toyota is here to make money.
 

Craig234

Lifer
May 1, 2006
38,548
349
126
The reinstatement of license fee - linked in my previous post - was enough along to about balance the budget from deficits Schwarzeneggar has faced after lowering the fee, $4B.

It's not enough to balance the budget other years when it's larger, most notably during the current financial crash.

As for the year it was passed, I can't say for sure - there are always big deficit projections that 'have to be closed' until the negotiations happen. At what point do you define the deficit - a year ahead of time, a day into the negotiations, or when? But the bolded text in my quote above has the LA Times defining it at one point:

Now the defining and perpetual cloud over the Schwarzenegger administration has become the budget's operating deficit and the amount by which it carries over from one year to the next, or -- as is the case this year -- the amount by which it requires slashing state programs.

And that amount is, of course, just about the same amount as the money lost from cutting -- or, if you prefer, reinstating -- the car tax. How much? $3.8 billion...
 

shira

Diamond Member
Jan 12, 2005
9,567
6
81
Originally posted by: spidey07
One sure fire way to make business and people flee your state is to raise taxes. It's a downward spiral. Higher taxes = less tax revenue, raise them again = even less revenue.

Ah, another brilliant Spidey post.

Assuming Laffer was correct (which remains highly controversial), even Laffer himself claimed that on the LEFT side of the Laffer curve, as rates increased so did revenues. Laffer's claim was that there was a point BEYOND which further tax-rate increases were counter-productive.

But Spidey has confidently informed us that EVERY tax increase is counter-productive.

What a troll.
 
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