I want to take a minute to point out that at this moment in time, we don't have a budget deficit. Indeed, the special session is predicated on an expected budget deficit for next fiscal year based on all the spending the Democrats want to do. If during the next regular session the legislature were to reduce spending, we wouldn't have a deficit! If they simply waited until the regular session to do ANYTHING, good or bad, at least the public would have adequate time to show what they really think.
So why the special session? The Democrats have a monopoly on power, and they believe in big government, endless programs, and ever-growing taxation. They just can't wait to shove it down our throats, and they don't want to wait until the regular session because there is too high of a chance that the public would actually get what it wants--reasonable tax policy.
Moving on, even if you take the political-speak at face value, the purpose of this special session was to FIX the budget deficit. So what did our legislators do? Just the opposite.
A version of Governor O'Malley's proposed expansion in health care coverage passed in the Senate yesterday, and a similar version of the bill is expected to pass in the House today. When the dust settles, THIS WILL COST US $200-$600 MILLION MORE EVERY YEAR.
I have health insurance that covers myself and 1 other person, which costs me $582 every month. I own a seasonal business (7 months out of the year), and each of my 14 employees are eligible for health insurance, of which I pay 50%. Their premiums are either $209, $252, or $291 PER PERSON PER MONTH, and I pay my half year round--even when we are not operating. This is a lot of money that I pay--why should I have to kick in my share of $200-$600 million for everyone else?
For those of you who don't like math, I will tell you that it is easier to eliminate a budget deficit when you spend less money. If, however, you wish to push through an unpopular program at a bad time with the least resistance possible, simply refer to what is happening this week.
Showing posts with label doomsday budget. Show all posts
Showing posts with label doomsday budget. Show all posts
Saturday, November 10, 2007
Wednesday, November 7, 2007
Herb McMillan Op-Ed
I have no idea which paper this will appear in, or if it has already appeared, but Herb forwarded this information to me and I shall forward it to you.
Boo! O’Malley’s Scary Budget Story
Give Governor Martin O’Malley credit. He knows how to tell a scary story. Last week, O’Malley announced that the failure to pass his 1.3 billion dollar tax package would result in deep cuts to education, public safety, and health care that would “irreparably damage” Maryland’s quality of life. Those opposed to a Special Session, slots, and higher taxes would bear responsibility for this tragedy.
O’Malley is hardly the first politician to use misdirection, fear, and a manufactured sense of urgency to push his agenda. But before we run screaming into the arms of some pretty frightening tax increases and slots, let’s unmask some of O’Malley’s Special Session goblins.
Misdirection is the most reliable trick in the tax increase playbook. Faced with a deficit, liberal politicians claim the most important, worthy, and politically leverageable programs are up for deep cuts. No one wants to irresponsibly cut these items. Tax Increases and slots are much easier to justify if people believe the gain outweighs the pain. By framing the debate this way, cuts to duplicative, ineffective, wasteful, and bloated programs aren’t debated because they aren’t even on the table.
O’Malley’s “Cost of Delay” Budget utilizes this tactic expertly. For example, O’Malley claims without tax increases and slots, he would have to cut University of Maryland funding by 10%, and Medicaid by $240 million. Of course, reductions of this type and size aren’t necessary to balance the budget. Earlier this year, the non-partisan Department of Legislative Services (DLS) developed a balanced budget without any new taxes or slots. As DLS Director Warren Deschemaux put it, “Our budgetary approach was to be as easy as possible on the programs that help people, and as hard as possible on the people that can help themselves”. The DLS Budget, which O’Malley ironically labeled a “doomsday scenario” would actually increase the University of Maryland budget based on enrollment growth, instead of an automatic inflation formula. This simple measure would save taxpayers 54 million dollars. And while O’Malley would arbitrarily gut Medicaid by $240 million, the DLS proposal would institute necessary reforms and prune it by $62 million. Common sense measures, like requiring non exempt Medicaid recipients to pay a small 2% premium and use generic drugs when medically allowable, are part of the DLS package.
But prudent and necessary cuts won’t sell a tax increase; only deep and threatening ones will get the job done.
The week prior to O’Malley’s “Cost of Delay” budget, a Democrat Senator said, “O’Malley needs to show people it’ll hurt. Closing police stations worked when Schaeffer was governor.” Sure enough, O’Malley’s budget proposed closing state police stations and parks. None of these deep cuts made the DLS budget.
Even the most liberal Democrats know O’Malley’s creating a false sense of urgency to push his tax and slots plan. Comptroller Peter Franchot, who as a delegate voted for every tax increase O’Malley’s proposed, stated in a letter to the legislators that, “I must question the timing and necessity of [O’Malley’s] approach…through June 30, 2008, Maryland has a balanced budget…the volatility of the US AND Maryland economies, the absence of an immediate fiscal crisis, and the lack of detail about the plan could all combine to create a perfect storm of unintended consequences”.
With the special session underway, O’Malley continues to create drama to keep up the pressure. One day, he proposes cutting Medicaid by $243 million; the next, increasing it by $743 million. Three weeks ago, he proposed a small property tax cut. This week, he tied the property tax cut to approval of slots.
Ironically, O’Malley’s property tax cut is a mirage anyway. The average Anne Arundel County homeowner will save $100 the first year. But within three years, rising property assessments automatically reduce O’Malley’s $100 cut to a $30 cut.
O’Malley’s tax and slots blitzkrieg is about using fear to expand the size of government and entitlements, not resolving the deficit As the DLS has demonstrated, we can adequately find our needs, provide a safety net, and balance the budget without tax increases or slots.
In reality, “the only thing we have to fear is fear itself.” Before we’re scared into giving government more of our money to “invest” for us, lets remember that the private sector provides far more jobs and health care for working families than government ever has. Why would we take more money from working families to “invest” in a government bureaucracy that has consistently failed to improve education, health care, or the environment, despite huge funding increases?
It’s time to put the needs of middle class families ahead of expanding government entitlements. Allowing these families to keep more of what they earn would be a good start.
Boo! O’Malley’s Scary Budget Story
Give Governor Martin O’Malley credit. He knows how to tell a scary story. Last week, O’Malley announced that the failure to pass his 1.3 billion dollar tax package would result in deep cuts to education, public safety, and health care that would “irreparably damage” Maryland’s quality of life. Those opposed to a Special Session, slots, and higher taxes would bear responsibility for this tragedy.
O’Malley is hardly the first politician to use misdirection, fear, and a manufactured sense of urgency to push his agenda. But before we run screaming into the arms of some pretty frightening tax increases and slots, let’s unmask some of O’Malley’s Special Session goblins.
Misdirection is the most reliable trick in the tax increase playbook. Faced with a deficit, liberal politicians claim the most important, worthy, and politically leverageable programs are up for deep cuts. No one wants to irresponsibly cut these items. Tax Increases and slots are much easier to justify if people believe the gain outweighs the pain. By framing the debate this way, cuts to duplicative, ineffective, wasteful, and bloated programs aren’t debated because they aren’t even on the table.
O’Malley’s “Cost of Delay” Budget utilizes this tactic expertly. For example, O’Malley claims without tax increases and slots, he would have to cut University of Maryland funding by 10%, and Medicaid by $240 million. Of course, reductions of this type and size aren’t necessary to balance the budget. Earlier this year, the non-partisan Department of Legislative Services (DLS) developed a balanced budget without any new taxes or slots. As DLS Director Warren Deschemaux put it, “Our budgetary approach was to be as easy as possible on the programs that help people, and as hard as possible on the people that can help themselves”. The DLS Budget, which O’Malley ironically labeled a “doomsday scenario” would actually increase the University of Maryland budget based on enrollment growth, instead of an automatic inflation formula. This simple measure would save taxpayers 54 million dollars. And while O’Malley would arbitrarily gut Medicaid by $240 million, the DLS proposal would institute necessary reforms and prune it by $62 million. Common sense measures, like requiring non exempt Medicaid recipients to pay a small 2% premium and use generic drugs when medically allowable, are part of the DLS package.
But prudent and necessary cuts won’t sell a tax increase; only deep and threatening ones will get the job done.
The week prior to O’Malley’s “Cost of Delay” budget, a Democrat Senator said, “O’Malley needs to show people it’ll hurt. Closing police stations worked when Schaeffer was governor.” Sure enough, O’Malley’s budget proposed closing state police stations and parks. None of these deep cuts made the DLS budget.
Even the most liberal Democrats know O’Malley’s creating a false sense of urgency to push his tax and slots plan. Comptroller Peter Franchot, who as a delegate voted for every tax increase O’Malley’s proposed, stated in a letter to the legislators that, “I must question the timing and necessity of [O’Malley’s] approach…through June 30, 2008, Maryland has a balanced budget…the volatility of the US AND Maryland economies, the absence of an immediate fiscal crisis, and the lack of detail about the plan could all combine to create a perfect storm of unintended consequences”.
With the special session underway, O’Malley continues to create drama to keep up the pressure. One day, he proposes cutting Medicaid by $243 million; the next, increasing it by $743 million. Three weeks ago, he proposed a small property tax cut. This week, he tied the property tax cut to approval of slots.
Ironically, O’Malley’s property tax cut is a mirage anyway. The average Anne Arundel County homeowner will save $100 the first year. But within three years, rising property assessments automatically reduce O’Malley’s $100 cut to a $30 cut.
O’Malley’s tax and slots blitzkrieg is about using fear to expand the size of government and entitlements, not resolving the deficit As the DLS has demonstrated, we can adequately find our needs, provide a safety net, and balance the budget without tax increases or slots.
In reality, “the only thing we have to fear is fear itself.” Before we’re scared into giving government more of our money to “invest” for us, lets remember that the private sector provides far more jobs and health care for working families than government ever has. Why would we take more money from working families to “invest” in a government bureaucracy that has consistently failed to improve education, health care, or the environment, despite huge funding increases?
It’s time to put the needs of middle class families ahead of expanding government entitlements. Allowing these families to keep more of what they earn would be a good start.
Thursday, September 20, 2007
Fuzzy Tax Math
As part of his rhetoric at the "kitchen table" unveiling of more details on new taxes, "Governor MOM" declared that 95% of taxpayers would save money under the new proposal.
First of all, the 5% who would pay more are, of course, the rich. I am not even going to go into the arguments as to why taxing the rich at a disproportionately high rate hurts precisely the poor and middle class people that people are trying to help, and instead focus on the fact that the 95% statistic is total balderdash in the first place!
(I recently learned that 'balderdash' is a synonym for 'nonsense', and I have been striving to use the word frequently.)
The current state tax code provides that all persons are taxed at a rate of 4.75% of income for all incomes over $3,000. Since almost everybody makes more than $3,000 per year, basically we all pay a 4.75% state income tax.
The new tax code makes some changes, but single persons making $15,000-$150,000 and married persons making $22,500-$200,000 still pay 4.75%!! The median household income in Maryland is about $53,000--this means that the average family is paying basically the same income tax!!!
AND, THIS IS ONLY THE INCOME TAX!! If you raise the sales tax by 20%, raise the gas tax by who knows how much, and expand the sales tax to include services--the real tax environment that we will be facing rears its true, ugly head.
In other words, if you keep income taxes basically the same, and increase every other tax, taxpayers will be worse off than before and will have less money to spend or save.
As Ron George says, "Only the governor could call a tax increase a tax cut."
First of all, the 5% who would pay more are, of course, the rich. I am not even going to go into the arguments as to why taxing the rich at a disproportionately high rate hurts precisely the poor and middle class people that people are trying to help, and instead focus on the fact that the 95% statistic is total balderdash in the first place!
(I recently learned that 'balderdash' is a synonym for 'nonsense', and I have been striving to use the word frequently.)
The current state tax code provides that all persons are taxed at a rate of 4.75% of income for all incomes over $3,000. Since almost everybody makes more than $3,000 per year, basically we all pay a 4.75% state income tax.
The new tax code makes some changes, but single persons making $15,000-$150,000 and married persons making $22,500-$200,000 still pay 4.75%!! The median household income in Maryland is about $53,000--this means that the average family is paying basically the same income tax!!!
AND, THIS IS ONLY THE INCOME TAX!! If you raise the sales tax by 20%, raise the gas tax by who knows how much, and expand the sales tax to include services--the real tax environment that we will be facing rears its true, ugly head.
In other words, if you keep income taxes basically the same, and increase every other tax, taxpayers will be worse off than before and will have less money to spend or save.
As Ron George says, "Only the governor could call a tax increase a tax cut."
Monday, August 6, 2007
Back In Action
(Crossposted on Maryland Politics)
AP has been on a bit of an unplanned break recently, as he had to endure an accidental and catastrophic loss of the hard drive on his laptop. While trying to publish a business-related web site, I hit the wrong button and deleted everything, managing to devolve my computer back to its factory settings. But, with the help of some software CD's and a crafty Eastport businessman, I am up and running again.
And now to the business at hand. It seems that some fear-mongers have taken full advantage of the bridge collapse in Minnesota. Presented with the chance to propagandize the 'Doomsday' budget, state senator John Astle didn't disappoint, proclaiming in The Capital.......
I believe eventually we are going to have a crisis in Maryland.....Our (transportation money) is down, and eventually we are gong to have to close down some bridges because of safety concerns.
(This quote is verbatim. Memo to The Capital: good proofreading--"gong"?)
.......conveniently ignoring the fact that
officials said yesterday that .....these local bridges are safe.
To further detract from Mr. Astle's assertion, Mike Busch was quoted in the same article:
They are very expensive projects, and for the most part the federal government puts up the lion's share.
So, even if we have a doomsday budget problem--we don't, we have a spending problem--this should have minimal impact because the federal government pays the majority of the costs for roads.
Don't be fooled. The Democrats will have you believe that unless they raise taxes--a lot--our lives will be ruined. 'Our bridges will collapse, fires will go un-fought, police won't be able to keep up with crime, schools will turn away students', they will persuade. NOT TRUE.
Roads, bridges, fire, and police are some of the select few businesses that the government SHOULD be in. We need these things. What we do not need are Kent Island land deals, funding of pet projects, and increased government. The state should get its priorities straight, and spend our tax money on things everyone needs.
AP has been on a bit of an unplanned break recently, as he had to endure an accidental and catastrophic loss of the hard drive on his laptop. While trying to publish a business-related web site, I hit the wrong button and deleted everything, managing to devolve my computer back to its factory settings. But, with the help of some software CD's and a crafty Eastport businessman, I am up and running again.
And now to the business at hand. It seems that some fear-mongers have taken full advantage of the bridge collapse in Minnesota. Presented with the chance to propagandize the 'Doomsday' budget, state senator John Astle didn't disappoint, proclaiming in The Capital.......
I believe eventually we are going to have a crisis in Maryland.....Our (transportation money) is down, and eventually we are gong to have to close down some bridges because of safety concerns.
(This quote is verbatim. Memo to The Capital: good proofreading--"gong"?)
.......conveniently ignoring the fact that
officials said yesterday that .....these local bridges are safe.
To further detract from Mr. Astle's assertion, Mike Busch was quoted in the same article:
They are very expensive projects, and for the most part the federal government puts up the lion's share.
So, even if we have a doomsday budget problem--we don't, we have a spending problem--this should have minimal impact because the federal government pays the majority of the costs for roads.
Don't be fooled. The Democrats will have you believe that unless they raise taxes--a lot--our lives will be ruined. 'Our bridges will collapse, fires will go un-fought, police won't be able to keep up with crime, schools will turn away students', they will persuade. NOT TRUE.
Roads, bridges, fire, and police are some of the select few businesses that the government SHOULD be in. We need these things. What we do not need are Kent Island land deals, funding of pet projects, and increased government. The state should get its priorities straight, and spend our tax money on things everyone needs.
Thursday, July 12, 2007
A Promise Made Good
Yesterday I noted how House Speaker Busch calmly assured us, vis-a-vis a quote in The Capital, not to worry about the budget cuts as they won't effect our essential services. Look! Down the page!! Just a little bit lower than you are reading right now!!!
The Capital, immediately recognizing the damage they did to the Democrat Propaganda Strategy, immediately ran an article the NEXT DAY about how the budget horrors will affect those services.
Here are some quotes:
A state workers union said the cuts threaten services to the most vulnerable Marylanders, from those in foster care to those treated by emergency responders......
"We are stretched to the limit," said Pete Peterson, a helicopter pilot who flies medivac flights.
Pete Peterson. Pete Peterson!!!!! Did the propaganda machine spend any time coming up with this name? I mean, this is straight out of a comic book--a superhero, life-saving helicopter pilot named Pete Peterson. I, for one, would like to meet Mr. Peterson. I bet he has some cool stories, or at least some hippie parents.
Flo Jones, a foster care case manager, said "many of the state's most vulnerable children will be at risk" if the Board of Public Works approved cuts to the already "threadbare" agency.
Feeling suspicious, I took the time to verify that 'threadbare' is indeed a word. Although perhaps slightly misused, it is marginally sensible in the context of this sentence. Now to investigate this Flo Jones character.......
Then the governor chimed in:
We need to restrain spending, O'Malley said yesterday.....
.....handily forgetting how much money he has wasted.
And around and around we go.
The Capital, immediately recognizing the damage they did to the Democrat Propaganda Strategy, immediately ran an article the NEXT DAY about how the budget horrors will affect those services.
Here are some quotes:
A state workers union said the cuts threaten services to the most vulnerable Marylanders, from those in foster care to those treated by emergency responders......
"We are stretched to the limit," said Pete Peterson, a helicopter pilot who flies medivac flights.
Pete Peterson. Pete Peterson!!!!! Did the propaganda machine spend any time coming up with this name? I mean, this is straight out of a comic book--a superhero, life-saving helicopter pilot named Pete Peterson. I, for one, would like to meet Mr. Peterson. I bet he has some cool stories, or at least some hippie parents.
Flo Jones, a foster care case manager, said "many of the state's most vulnerable children will be at risk" if the Board of Public Works approved cuts to the already "threadbare" agency.
Feeling suspicious, I took the time to verify that 'threadbare' is indeed a word. Although perhaps slightly misused, it is marginally sensible in the context of this sentence. Now to investigate this Flo Jones character.......
Then the governor chimed in:
We need to restrain spending, O'Malley said yesterday.....
.....handily forgetting how much money he has wasted.
And around and around we go.
Subscribe to:
Posts (Atom)