Tag Archives: Deficit

Why don’t governments cut spending during tough times?

Check out this article from USA Today.

Excerpt:

Many states and cities coping with hard times are asking residents to open their wallets for the latest fashion in taxation — the temporary tax.

Governments are raising taxes for a specific period of time and promising the hikes will go away when good times return.

Some big temporary taxes:

Arizona voters decide today whether to approve a three-year sales-tax hike. Republican Gov. Jan Brewer pushed to raise the sales tax from 5.6% to 6.6%, dedicating two-thirds of the new money for schools.

Kansas hikes its sales tax July 1 from 5.3% to 6.3% for three years. The tax is designed to prevent cuts in education and social programs.

• Mobile, Ala., boosts its sales tax by 1 cent for 16 months starting June 1. The combined state and local rate will be 10%. Goal: avoid laying off police and firefighters.

A half-dozen other states are eyeing temporary taxes. So are many cities and counties, including King County, Wash., which includes Seattle.

Temporary taxes are phenomena seen during recessions, says Curtis Dubay, a tax expert at the conservative Heritage Foundation. “You don’t hear about temporary taxes when money is flowing into the coffers.”

The problem is that these taxes rarely go away, he says. “Once politicians get their hands on revenue, they won’t give it up,” he adds.

I noticed that Stan, a resident of Arizona, wrote about an alternative to temporary tax hikes in this post.

Excerpt:

Let’s see what the official 2010 budget says. Hmm. Well, they’ll be paying back $50 million in Federal Stimulus money. Odd. There is a line item for an additional $40 million in “new private prison beds”. Right … so our criminals are more comfortable. Got it. Interesting. There is a “Department of Racing”. Apparently the Department of Racing regulates the Arizona parimutuel horse and greyhound racing industry. Oh, now this is funny. The Department of Economic Security has a budget of $546 million. Perhaps we ought to fire them, eh? While we’re at it, perhaps we ought to take a real hard look at the Governorʹs Office of Strategic Planning and Budgeting and their $2 million. I’m thinking they’re not doing their job. Oh, I suppose there is no way around the $2 million we’re spending on the Board of Cosmetology. I mean, what could be more important to Arizonans than beauty treatments. Oh, yeah, we have to regulate that carefully. There’s another $4 million on a “Telecom for the Deaf Fund”. I know … that’s a good thing … but is it more important than public safety? Is that really the job of the government? And the fact that we’re spending more than $13 million on a “Department of Gaming” (with another $74 million to the Arizona State Lottery Commission) is troubling to me all on its own.

Allegedly something around 60% of our budget is already spent on schools and public safety and health care. Fine. But is anyone looking at what that money is going toward and how to cut waste? Trust me. There is lots of waste.

Overspending governments always market tax hikes as ways to say essential services or “compassionate” social programs. Why can’t they just cut some wasteful spending, instead? Is that so hard?

Obama wants 23 billion more from taxpayers to bailout teacher unions again

Story from Fox News.

Excerpt:

Despite President Obama’s pledge for honest budgeting and billions of dollars in stimulus money spent to save teachers’ jobs, the Education Department is asking for off-the-books emergency funding to keep local districts from laying off school teachers next school year.

Education Secretary Arne Duncan sent Democratic lawmakers a request Thursday to pass a $26 billion emergency supplemental to fund up to 300,000 teachers’ jobs that he says will otherwise be lost in the fall.

[…]The request comes just a year after an unprecedented $100 billion in federal stimulus money was allocated to school districts as part of the $863 billion recovery act. Of that amount, $48 billion was designated for saving teachers’ jobs and investing in educational programs. Another $31 billion in stimulus funds were sent to states for Pell grants, competitive funds and programs helping disadvantaged students.

[…]An Education Department spokesman acknowledged that the stimulus funds have already saved roughly 300,000 teachers’ jobs once, but an additional $23 billion more is needed to preserve education jobs, along with $1 billion in funds to save early childhood education jobs and an additional $2 billion to support public safety.

Yet another bailout from productive private sector taxpayers, for yet another unproductive Democrat special interest group.

Oh well, at least the teacher unions are happy with their bailout. And the Wall Street bankers are happy with their bailout. And the auto unions are happy with their bailout. And the public sector unions are happy with their bailout. And so on, and so on, and so on.

I would expect that the left-wing media will getting a bailout soon. And then the left-wing trial lawyers. And then the left-wing illegal immigrants. And then the left-wing prisoners. That should about cover it, I guess.

Who else is left?

Hey Obama! Where's my bailout?

Oh. Of course.

Michele Bachmann on the US taxpayer-funded bailout of Greece

The United States supplies tons of taxpayer money to the IMF, and the IMF used it to bail out Greece from their own fiscal craziness.

Oh, she isn’t happy at all.

Here’s Paul Ryan with more details.

This is 23 minutes long.