A Budget Proposal Tower of Babel
California operates in a Tower of Babel when it comes to discussing the state budget. When one side does not understand the words and phrases of the other the budget mess is impossible to solve.
Yesterday, the Democrats conference committee released a budget plan that proposes tax increases of $8.2 billion. In the press release issued with details of the plan the Democrats claimed:
The Conference Committee budget is a balanced approach. It closes tax loopholes and rolls back tax breaks for corporations and the wealthy.
Balanced? There is nothing about spending cuts in that paragraph, only raising taxes.
Let the Sun Shine In
Readers of this blog already know that the legislative Budget Conference Committee voted along party lines to recommend a nearly $10 billion tax increase to provide most of the fill for a $15 billion budget deficit.
While a $10 billion tax increase may seem shocking, the sheer amount is the least of it. After all, surely noone believes that anything close to that amount would eventually be adopted by a bipartisan vote of the Legislature. More disturbing, though, is the direction that the tax increases are headed:
First, about one-fifth of the revenue increases are really just accelerations or gimmicks, which would create a $2 billion hole in next year’s budget.
It’s a Start, but Small Businesses Need to Hear More
When Senator John McCain delivered the keynote address at the National Federation of Independent Business 2008 National Small Business Summit last month, he did much more than speak to several hundred interested small business owners. He pushed the concerns of a significant voting bloc to the forefront of the presidential campaigns. In fact, both Senators McCain and Barack Obama have spent much time specifically addressing the number one issue among small businesses—healthcare. And it’s about time.
Recognizing that healthcare costs have become unmanageable for many entrepreneurs, Senator McCain said, if elected, his administration would introduce healthcare reform that would provide hardworking Americans more options and expand portability of coverage.
Senator Obama, who was invited to speak at the summit but did not attend, responded to Senator McCain’s remarks by reiterating that small businesses need more options to access quality, affordable healthcare coverage. We also know both candidates recognize that implementing health information technology and addressing an inequitable tax structure should play a part in any comprehensive reform package.