Budget Desperation is the Mother of Inventive Tax Strategies
Kentucky agencies continue to list the draconian cuts to basic services looming even if the General Assembly approves Governor Beshear's budget "plan," not to mention the catastrophic shutdowns if we don't get any new revenue.
In California, Democratic legislators have figured out a way around republican refusal to raise taxes to resolve a $40 billion budget deficit.
But it takes a two-thirds vote to pass a budget or raise taxes in California, and California Republicans flatly refuse to raise taxes in any way, shape, or form. Result: deadlock.
Today, though, Democrats in Sacramento came up with a plan. It turns out that revenue-neutral tax changes only require a majority vote. And user fees only require a majority vote too. So Dems have proposed a two-step tap dance. First, raise a bunch of taxes and eliminate a bunch of fees in a revenue neutral way. Pass it with a majority vote. Then put all the fees back in place under a different name and kick them up a notch. Pass that with a majority vote too. Voila! A tax increase with only a majority vote. Toss in $7 billion in spending cuts (schools, healthcare, etc. — the usual) and we're halfway down the road to fiscal solvency!
It's probably unconstitutional, and it wouldn't help Kentucky's problem of a repug-majority Senate under David Williams' evil control, but that's not the point.
The point is that in some states, Democratic legislators don't hide under their desks and cry when repugs go "Boo!"
Kentucky used to be one of those states.
Cross-posted at BlueGrassRoots.
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1 comment:
Our dear Governor is a veeerrrryyyy slow learner. He has yet to figure out that he will get absolutely nowhere in the legislature until he makes some kind of peace with David Williams. Beshear's ego prevents this from happening, hence don't look for the Senate to assist in bailing him out. Call him evil if that makes you feel better but he can effectively stop most anything the Gov wants to happen. A competent governor would figure out to work with him one way or another. That's how divided government works. The inability to work with your political enemies is the hallmark of a losing politician.
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