The T word has been resurrected.
After saying “no new taxes” for so long that it became her mantra, Gov. Jodi Rell has folded her hand.
With still no budget, Rell offered the controlling Democrats her third state budget plan. This one cuts spending by $1 billion. However, it also includes $391 million in new revenues via taxes on cigarettes and alcohol and a “temporary” three-year surcharge on corporate taxes.
However, we all know that in the lexicon of government-speak, temporary means forever.
She pointed out in announcing her latest plan that the proposals offered by the Democrats are “unsustainable and unaffordable.”
“Their budget calls for $1.8 billion in new or higher taxes while cutting just $130 million in state spending ”“ just three-tenths of one percent of their $37.9 billion budget. Their proposals will lead to red ink and pink slips,” Rell said.
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“I would have preferred not to raise taxes at all. But it has been clear for months ”“ and it remains clear ”“ that the Democrat majority cannot, will not, cut state spending. I could cut more ”“ but they cannot. And we need a budget.”
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The corporation tax surcharge Rell has proposed would be 10 percent for income years 2009, 2010 and 2011. It would be retroactive to Jan. 1, 2009. It is estimated it would raise $87 million in fiscal year 2010 and $54 million in fiscal year 2011.
Also being tagged by the corporation tax would be out-of-state companies with no physical presence in the state but that have an economic stake here.
Rell”™s new budget plan also recommends capping tax credits for owners of historic homes and those shooting movies in the state. For those owning a piece of history, the credit will be capped at $2.5 million per year. The film industry production credit is capped at $25 million per year under Rell”™s new plan.
And yes, even in death, the long arm of government will be dipping into the pockets of the deceased. The estate tax normally due within nine months of death, will now be due in six months.
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Also seeing increased taxes are the soft targets ”“ smokers and drinkers.
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If you enjoy smoking you might want to sit down and grab a drink ”“ the tax on a pack of cigarettes would rise from $2 to $3. Other tobacco products would see a tax increase of 7.5 percent from 20 percent to 27.5 percent, under the new plan.
Drinkers would see a 10 percent rise on all alcohol beverages.
Sin taxes indeed. To make it through this recession some folks need a little recreational enticement.
One sin tax we would like to see imposed is a budget tax.
For every day, no, every hour, that the General Assembly fails to come up with a state budget, each politician is fined an X number of dollars. Hit them in their wallets and see if that doesn”™t light a fire under them.
Perhaps the best way to make them toe the line is to seize the pork.
Should our elected officials miss the budget deadline by just one minute, erase every single earmark contained within it. The earmarks, aka pork, are their ticket to re-election.
No quid, no pro quo.
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Clunk!
Auto showrooms are overflowing with Americans looking to get up to a $4,500 subsidy for their worn, fuel-sucking vehicles.
Unfortunately, the showrooms they”™re visiting feature foreign models.
The U.S. Department of Transportation reported last week that while the Ford Focus was the top seller in the government”™s so-called “cash for clunkers” program, Toyota”™s Corolla, Prius and Camry, along with Honda”™s Civic were the other top-selling models.
Rounding out the Top 10 sellers were Ford”™s Escape, Hyundai”™s Elantra, Dodge”™s Caliber, Honda”™s Fit and Chevrolet”™s Cobalt.
The cutely acronymed Car Allowance Rebate System ”“ how much taxpayer money was spent on that? ”“ offers a credit of up to $4,500 toward a new vehicle providing the one being turned in is junked.
The program”™s aim was to invest in a flagging U.S. auto industry, not bolster foreign industry.
Should more money be poured into the program, which saw $1 billion in credits gobbled up in less than a week, perhaps a clause should be added: Buy American, please.
