Democrats Might Pass Budget

No, really. And maybe even before the end of the month! (Update: CTNJ has a more extensive article)

I will believe it when I see it.

However, should the Democrats’ plans turn into an actual budget, I expect there will be a lot of criticism of this:

[Speaker Donovan] says the proposal includes higher income tax rates on wealthier taxpayers.

But I also expect that if the Democrats have any brains, they’ll make a clear contrast to the public between Rell’s budget, which doesn’t raise taxes but does close schools and courthouses (and severely cuts funding to public libraries), and a Democratic budget which raises taxes on the rich while saving those services.

I wonder why they didn’t do this a long time ago? Maybe the idea was to let Rell’s proposed budget sit out there for a while before riding to the rescue. Or maybe they just didn’t have consensus. And maybe they’d like a little more time to let ads like this one from SEBAC to percolate:

In any event, if they pass a budget and the governor vetoes it before the end of the fiscal year, the ball goes back to Rell’s court.

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9 responses to “Democrats Might Pass Budget

  1. Oh rich people, from universal healthcare to budget deficits, is there any problem that wouldn’t be solved by higher taxes on you?

  2. Shame on the rich. How dare they? What are they thinking trying to make the best living for themselves?!?! I hate successful, wealthy people, we should just tax them and tax them and tax them…I mean, why should I work harder to make more money and be more productive when we can just tax those with all that money — I mean, why do they deserve it!

    Stupid George David and his 20M+ a year in salary and bonus and stock…I mean, what did he ever do? Big freakin deal that he took a company’s stock price from $15.00 p/share to $65.00 p/share — sooooo?? He should give some of that money back to the workers who work 9a-5p. Those are the REAL workers, with their lunch breaks and 8hr shifts. He has no idea what it is to work that hard!!

    Thank God we finally have some leadership in the capital looking out for the workers in this state.

  3. Was that Jimmy Amann smoking a cigar in the commercial’s background?

    What about everyone paying their fair share?

    I never considered myself rich — I work my ass off. I’m in sales.

    Three years ago, I made nearly $300k. And, I paid lots of taxes.

    Last year, $65k. If I make $65k this year, it will be a good one. 😦

    I don’t know, I think I’m sharing the pain.

  4. The problem is that the Dems in the legislature continue to look at the budget as a revenue problem not a spending problem. I know that tax increases will be they must be matched with budget cuts. This economic crisis gives us the opportunity to fundamentally reform the scope of our state gov’t and make it leaner and more responsive. We have to many agencies and commissions and we can no longer afford them. It is sad when the first response to budget shortfalls is tax increases. In my house when money is tight I cut back on spending why does the state not do the same.

  5. It is sad when the first response to budget shortfalls is tax increases. In my house when money is tight I cut back on spending why does the state not do the same.

    Why is that sad? The only reason we have a government is because there are many things we can’t do individually. The state should spend more in a recession, not less, because we don’t want to dig a deeper hole for ourselves.

    What’s really sad is that there wasn’t a high enough balance to get through the lean times — the fact that there’s a recession might have surprised some, but our government (all branches of it) should be able to plan for the long term. And there’s always going to be a recession sometime in the future.

    During the good times, taxes should be more than the cost of services — 10% more each year, maybe. Then tax cuts in a crisis would make a lot of sense, because you’d be drawing on a reserve designed to provide services when the economy collapsed.

  6. Three years ago, I made nearly $300k. And, I paid lots of taxes.

    Last year, $65k. If I make $65k this year, it will be a good one.

    You probably paid about $15,000 in state income tax three years ago, and $3000 this year. Would you have been willing to have a 6% instead of 5% tax in 2005 if you could go from a 5% to 0% rate now?

    That $3,000 is going to make a much bigger difference to you (5% of your income) now that you’re feeling some pain than it would have when you were flush (and it was only 1% of your sizable income).

  7. You probably paid about $15,000 in state income tax three years ago, and $3000 this year. Would you have been willing to have a 6% instead of 5% tax in 2005 if you could go from a 5% to 0% rate now?

    No.

    I fear that higher taxes will drastically impact my earning ability.

    I rely on very high wage earners to make my living, and they are worth half of what they were, or they’ve left.

    Even in my case, my 2x month house cleaner doesn’t come any more, and I cut my own grass now. Not looking for pity, but I can see the trickle down effect….

  8. SamuelCT,

    “During the good times, taxes should be more than the cost of services — 10% more each year, maybe.”

    Fair enough, we are all entitled to our opinion. But I must ask a few questions.

    First, During one of the recent good times a few years ago our Democratically controlled GA, and Governor, quickly squandered away a billion dollar “surplus” on all sorts of on going spending that is part of the cost of services problem today that we now cannot afford. Now you say they should have added 10 % more in taxes on top of that?

    The problem with logic like yours is that in the good times adding spending for cost of services that are nice to have, is a very easy thing to do. Somehow in bad times like we now have cutting that nice to have spending becomes an impossible task for those who only understand how to spend.

    Second, I guess I would ask you seem to feel our state should be spending more in a recession when the rest of us are earning far less and trying just to make ends meet. Your post # 6 here would suggest that to cover that cost the “rich” should be taxed more…… I wonder do you think you would still feel the same way if we not only increased the income tax on the “rich” but on the middle class as well? I mean can you imagine just how much more we could grow state government if we did both?

    Lastly, with that thought in mind, just how much more would you say you would accept having your state income taxes raised to promote your concept of how things should work?

    I’ll give you my answer…….. For me it’s ZERO……… Talk to me about how much to increase my taxes after you show me how much the state has done to reduce it’s wasteful spending.

  9. The problem with logic like yours is that in the good times adding spending for cost of services that are nice to have, is a very easy thing to do. Somehow in bad times like we now have cutting that nice to have spending becomes an impossible task for those who only understand how to spend.

    That’s just it though — in bad times, what used to be a “nice to have” line item can often become a necessity. Put another way, we could debate the merit of having the state subsidize buses and trains, but in a bad jobs climate, taking that subsidy away is going to have a much bigger negative impact than it would have in a good employment climate.

    My view of government is that it’s basically disaster insurance. What the hell do we keep it around for if we’re going to slice it to ribbons as soon as we’ve got a bona fide systematic disaster on our hands?

    Lastly, with that thought in mind, just how much more would you say you would accept having your state income taxes raised to promote your concept of how things should work?

    Depends on what services we get. The poor and middle class still pay in to Social Security and Medicare, even though they don’t pay for every dime of the benefit they receive later in life. But sure, if I stop paying for health insurance through work and start paying for it through the government, I don’t expect my cost to go to zero.

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