Now that the Budget is Done…
The legislature took a break after congratulating each other on passing the budget; the finance people immediately announced that next year’s deficit is already somewhere between $8 billion and $20 billion (That is before we know the outcome of the various lawsuits about the shenanigans they included in this "balanced" budget.); and the Governor called a special session for the fall to take up the findings of the Commission on the 21st Century Economy, which is capitol-speak for "tax code change commission." The Commission has been tasked with identifying revisions to the tax code that would stimulate the state’s economy while remaining revenue neutral, and the Governor now, without knowing what recommendations will be made, is asking the legislature to consider the proposed changes.
Coverage of the Commission’s debates has focused on the "volatility" of state tax revenue, which is just silly. Taxes may indeed be volatile, depending on what is going on in the world’s economy at any one time. Ask any businessperson in the state about the volatility of their revenue; it is simply a fact of doing business. What… Read More