posted on April 22, 2009 09:48
Now we may have a couple of good old-fashioned political donnybrooks over taxes and government – in Raleigh and in Washington.
In Raleigh, the Senate Finance Committee is taking up the Hunt plan. That’s the plan set out by former Governor Hunt and his bipartisan, business panel. The downside is it puts taxes on a whole bunch of services like building repairs, warranties, information technology, moving expenses and sales of downloaded music and software.
The political upside is a big cut in personal incomes taxes, corporate income taxes and the sales tax rate – plus repeal of the food tax.
The budget upside is that – combined with higher cigarette and alcohol taxes – the legislature gets $600 million more to plug the budget gap.
It’s a gutsy play by the Senate – especially when the GOP/Fox News Axis of Evil is stirring up tea-bag fever across America.
The fun comes in watching politicians and interest groups try to figure out where to land in this water.
Governor Perdue is steering clear. The state Chamber of Commerce hasn’t said where it is.
Politically, the question is whether history is getting ready to repeat itself. Sixteen years ago, in 1993, Bill Clinton took on a gutsy fight by raising taxes to balance the budget. It paid off economically. Politically, it was a disaster. It fueled the Republican revolution of 1994.
As Ferrel Guillory pointed out at breakfast yesterday, there is a common theme to then and now. Plotting a Republican comeback – and a way to channel tea-bag fever – is that old revolutionary from 1994: Newt Gingrich.
Next year, Newt might be trying to start another political revolution at the expense of another Democratic President. Newt versus Barack. Put that on Pay-Per-View and you’ll make a dent in the deficit.
Click Here to discuss and comment on this and other articles.
[Click to read and post comments...]