Hey, Good News, States See Some Revenue Growth. Bad News: Everything Else

I due truly love the spin from the LA Times:

States’ budget picture is brightening – But many continue to face deficits. Tax revenues are rising but demand for social services remains high, and there won’t be a batch of federal stimulus money this year.

Interesting. They destroy their own headline with the sub. Then there is the first paragraph

The good news in a report released Wednesday is that, as the nation’s economy slowly starts growing again, state budgets are finally on the mend after taking their worst battering since the Great Depression.

That”s the “brightening.” Period. Nothing else positive will appear in the next 15 paragraphs (and, no, I shan’t be excerpting them all)

The bad news is that the situation in state capitals is still grim: Even after cutting a combined $84 billion at the start of this fiscal year, 15 states face persistent deficits that must be closed over the next six months. Meanwhile, 35 states project deficits in the next fiscal year, which begins in July 2011.

Don’t know about you, but, to me, that sounds pretty damned bad. You know what would probably help: if people were confident that their taxes would stay where they are for the long term, and there wouldn’t be wacky legislation coming from the federal government.

The state in the worst shape is Illinois, which faces a deficit this year of a staggering 47% of its entire budget, about $13 billion. A sense of despair has settled over the state capital of Springfield, where various desperate measures, including a major expansion of gambling, have been kicked around.

Illinois Gov. Pat Quinn, who took over from impeached Gov. Rod R. Blagojevich and won his own term last month, has been pushing for an income tax hike to help close the gap. But there’s widespread skepticism about the viability of that proposal.

“Why on Earth should the taxpayers support a tax increase when elected officials have not demonstrated they are capable of managing Illinois’ finances and creating a proper budget?” a fellow Democrat, state Rep.-elect Michelle Mussman of Schaumburg, responded to a Chicago Tribune questionnaire recently.

Well, that’s liberalism: create unsustainable spending, then demand that the deficit be closed by the People who actually earn money. To some degree, they are right, since too many people vote for these left side idiots. They listen to all this huggy carey hopey changey feelings based clap trap, stuff that is too good to be true. And you know what the saying is about that. If you vote for a Democrat, you should be the one who pays higher taxes.

Speaking of taxes, the deal, which is driving Obama’s unhinged socialist base bat guano crazy(er), and which had Keith Olbermann telling he 12 viewers mean things about Obama, this deal is really better than nothing, but, I think the GOP is, yes, playing a bit too much politics, though, let’s face it, we do not know all the back room negotiation points. Even the left wing New York Times thinks it is a great deal, calling it a “back door stimulus plan.” Obviously, they do not think that the extension of the current tax rates will help, just everything not associated with George Bush.

It appears as if both the GOP and Obama want a tax cuts fight for the 2012 silly season. Here’s an idea: why not make the rates for those making up to $373,650 permanent, and just extend that higher bracket for 2 years? OK, Obama and his unhinged base do not get their $200k individual/$250k joint filing tax raises, but, they will get a chance to jack up those who tend to fall outside of the small business ownership range in a few years. (BTW, without an extension of the current rates, here is what the 2011 tax brackets will look like.) Make the capital gains rate permanent.

What does this have to do with the States? Well, consider, as I’ve mentioned, they get their revenue primarily through sales tax, property tax, and income tax. If people are assured of keeping more of their own money, they will spend more. Sales tax. As they spend more, companies will see the need for more employees. More income tax. People will purchase more property. Property tax. People and companies will not hold on to their older vehicles as long, and pay higher property tax on newer vehicles than on older ones. Slapping higher taxes on the high earners will not stimulate this. They’ll just shelter their money. But, all those rich Democrats, both in Congress, and their supporters, are welcome to pay the 2011 rates, regardless.

Crossed at Right Wing News and Stop The ACLU. sit back and Relax. we’ll dRive!

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3 Responses to “Hey, Good News, States See Some Revenue Growth. Bad News: Everything Else”

  1. WhiteRose says:

    When the economy started going sour a few yrs. ago, I started researching the Crash of ’29. Conclusion is that there will be a few upturns & they are negated by more down turns.

    Sure, things are looking up a little in California & a few other states, but I think it will be brief.

    Just read a new book along these lines that’s a thriller about Americans who actually take a stand. A thriller with surprise ending. I recommend it.

    http://www.booksbyoliver.com

    As our VP said earlier this yr….the 4 million jobs are gone forever. Once Americans enjoy saving money (as they do now) there will be less buying (at least for a few yrs.). The LATimes is not one of the more credible newspapers anyway. Good article. Thanks!

  2. John Ryan says:

    Wall Street and the stock market are doing great ! And corporate profits were at an all time HIGH for the 3rd quarter. The ultra rich are doing their best ever. Teach in the 50s 60s 70s the highest tax rate was twice what it is now, the greatest generation didn’t whine and our economy roared and was the best in the world.

  3. gitarcarver says:

    Wall Street and the stock market are doing great !

    You are kidding, right? The market closed November with a supposed “growth” that doesn’t even come close to sustaining any type of growth.

    And corporate profits were at an all time HIGH for the 3rd quarter

    Factually false when inflation and percentages are taken into account.

    Got any more lies?

    Teach in the 50s 60s 70s the highest tax rate was twice what it is now, the greatest generation didn’t whine and our economy roared and was the best in the world.

    Apparently you do have more.

    Are you really trying to sell us on the idea that in the 50’s, 60’s and 70’s the rich paid more while the lower class paid the same rate as they do now?

    It isn’t necessarily the rate, Ryan, it is where the money goes. Right now with entitlements and spending out of control, PLUS the fact that 1% of the highest incomes pay 40 percent of all income taxes, there is something wrong.

    No one “whined” because the load was shared by all in the past. Now, people like you are so envious of successful people that you want to pull them down to your pitiful existence.

    People like you hate anyone that makes more money than you do so you go after it.

    You don’t understand or believe in the American dream.

    The idea that the rich get a “tax cut” is saying that they are getting a gift. They aren’t. No one can get a gift of their own money.

    Democrats and people of your ilk keep saying that we can’t afford “tax cuts” because they don’t ever have to actually run a budget or a business. When times are tough, households and businesses look to increase revenue or cut costs. Government only looks to increase revenue.

    One major difference between people like you and conservatives is that we celebrate people that are successful. We strive to be like them.

    You and your ilk, on the other hand, whine about their lives and are green with envy and have a soul blackened with anger.

    It is that envy and anger that causes you to lie like you do.

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