The money mystery and the stimulus of the economy is a mystery to me. Sometimes counsel comes from questions and not advice. I have a few questions:
- How come the states' solutions center on raising revenues and the federal solutions look at borrowing and tax cuts?
- Why assume the stimulus must trickle down from the federal government to the state and eventually to the citizen rather than percolate up?
- How does it save individual's money when the federal government borrows money and then distributes it the states to handle their shortfalls? Taxpayer money is taxpayer money, be it state or federal.
- Why must we have a stimulus "package" rather than pointed and focused bills or acts in which the financial costs and benefits are spelled out?
- Why must the individual taxpayer adjust his or her expenses due to a reduced income, but government employees feel protected from reductions and furloughs?
- If property values go down (eg., cars, homes, etc), then why are those values reduced in the tax rolls to avoid an effective tax increase?
With those questions, I now reference Sen. Williams' turnaround on raising revenue in Kentucky:
Senate President David Williams said for the first time today that new revenue, tax hikes, will be needed to cover the state's 459 million dollar budget shortfall. But House and Senate leaders say they haven't agreed on what taxes will be raised or by how much. I'm hearing the numbers being tossed around behind closed doors are a 30 cents per pack increase in the cigarette tax and a tax hike on liquor that would generate about $100 million per year. House democrats are also discussing an extension of the sales tax to some services, similar to what was proposed by Governor Fletcher. But that proposal appears to have little support in the republican controlled Senate.
And arguably, some taxation without representation:
State to continue current system on car taxes
By Tom Loftus • email@example.com • January 22, 2009
FRANKFORT, Ky. — The Kentucky Department of Revenue has decided to continue valuing cars for property tax purposes as it has in recent years — a decision that averts a significant loss of revenue to both state and local governments but also means car owners won't get a tax cut.
Revenue Commissioner Thomas Miller told the House budget committee of the decision this morning.
The issue of the possible loss of revenue — from what would be a tax cut for many vehicle owners — comes at a time when the state is facing a projected $456 million revenue shortfall in the current fiscal year.
It was raised by the Revenue Department’s Office of Property Valuation last month. It stemmed from a change made in how the National Automobile Dealers Association lists values for vehicles in its annual guide.
The department uses that guide as the basis for setting values on cars registered in Kentucky for tax purposes.