Tom Bilyeu

California promptly borrowed $20 billion from the federal government to make it just rain on the fraudsters.

Now, 22 other states borrowed too.

Fair.

California was not alone in that regard.

But...

And this is a very big but.

Every other state has since paid back their loans and most did it within two or three years.

California, however, has not paid back a single dime of the principal.

That means federal taxpayers are currently footing the bill for California's insane, over-the-top, unimaginably large fraud complex.

And California's debt, by the way, is still growing.

In fact, California's unemployment insurance fund runs a more than $1 billion deficit every year all by itself.

Now, how could you not?

when fraud is this rampant.

California's employers, and I know firsthand, now pay a federal payroll surcharge nearly nine times higher than businesses in debt-free states.

And P.S., that's the fallout from unemployment fraud.

There's way more fraud in California than just the unemployment fraud.

Senior officials at the U.S.

Department of Health and Human Services told City Journal that their initial estimate for the Medi-Cal fraud rate is a full 25%.

MediCal's budget is $197 billion.

That means that an estimated $37.4 billion in fraud is leaking out.