We have a budget short fall and either need more revenue through the economy (which appears unlikely) or more state support. We either invest most heavily in those programs that are most likely to support the future economic health of the state - or we suffer longer and more deeply. So, we should bite the bullet and implement a tax plan that does not overly burden the poor.
But I realize that's naive.
There is clearly political calculus at work here. Unless there are enough legislators indicating potential support for new revenues to make it a good fight, any calls for taxation by the governor would waste political capital. And I haven't heard a peep from legislators.
Beshear obviously doesn't think he has the votes for a tax increase right now. Or perhaps, he wants to see if casino gambling has a chance first. But he thinks we'll know a lot more by April.
Right now, it looks like we're in for a rough year. Maybe things will look brighter by April 15th. But inaction for too long will stifle reform in P-12, and higher ed as well. The losers will be our students - and our future economy. Let's hope it doesn't go that way.
This from H-L:
...Q: Might you change your opposition to any tax increase?
A: We will not be proposing any tax increases in our upcoming budget.
Q: Are you just trying to push casinos?
A: The numbers speak for themselves. We have a half-billion dollar hole. I won't be proposing a budget to be balanced on some speculative income off of casinos. That would not be responsible and I'm not going to do that.
One of the options that this commonwealth does have to create additional revenue is to allow limited expanded gaming. But that issue is hopefully to be addressed in this General Assembly and we won't know where that's going until April 15.
Q: Do you oppose a cigarette tax increase?
A: I don't favor any kind of increase of taxes at this time. I think Kentuckians are taxed enough, particularly in these hard economic costs. ...
Q: Aren't we just asking students to pay more in tuition?
A: I talked to university presidents about this. We want to make sure there is student aid for those who want to go to college.
Q: Would you veto a tax increase?
A: I don't sense any support in the General Assembly for a tax increase....
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