Big Red Car here. Hope you are well on this nice crisp Texas day. It is wonderful.
So The Boss is out and about and I have been surfing the web. I came across a couple of interesting articles which seem to tell the tale as it relates to the fortunes of different states in the hands of Governors with different governing philosophies.
Governors Have to Balance Budgets
Most States require the budget to be balanced. Expenditures cannot exceed revenues. In Texas, before the Legislature can even begin spending your money the Comptroller has to certify how much revenue the State will receive in the next two years — charming feature of the Texas Legislature is they only meet every other year — and when the Legislature has spent all the money, they just go home.
Governors Control Their State
In all but twelve States, the control of the Legislature is vested in a single party.
The Republicans control a total of 24 States.
The Democrats control a total of 14 States.
There is no controlling party in the remaining 12 States, the lowest number since 1952.
What Are the Republicans Doing?
Where Republicans are in control there are either no State income taxes or they are being repealed as quickly as the Legislature can get it out on the floor.
This is a gross over simplification but don’t tell Gov Bobby Jindahl who has announced his desire to abolish income taxes and make a slight increase in sales taxes.
So why is this happening?
Look no farther than Texas where the absence of a State income tax has been credited with contributing significantly to prosperity.
And who does not like a jigger of prosperity with their spirits?
Everyone wants some Texas sized hospitality and lower taxes.
And, the Big Red Car say: “Why the Hell not?”
What Are the Democrats Doing?
Well, the Democrats are increasing taxes and spending the increases on additional programs which must be funded even if the State is struggling.
Take a look at Massachusetts — Taxachusetts, anyone? — where Governor Patrick Duval intends to increase the State tax on gasoline from $0.21/gallon toe $0.51/gallon — a Texas sized tax increase if ever such a beast trod the Earth.
Oh, but the Governor is not content to stop there. He wants $1B of new State taxes.
On his agenda is —
1. Increases to the State income tax;
2. Increases to the State sales tax;
3. A new tax to tax travel at the rate of $0.024/mile traveled in your Massachusetts automobile — a first in the Nation;
4. A new payroll tax; and,
5. The taxes just keep rolling in.
So you make your choices and you risk the outcomes.