Are Taxes Political Death?

Joe Sinsheimer came down last week on Mark Mellman, the House Democrats’ pollster, for counseling against raising taxes.
 
(I read this, by the way, on Facebook. Going on it is paying off for me.)
 
Like a lot of Democrats, Joe is enraged about budget cuts proposed in the House. It looks like the budget-writers are going for the terror strategy: scare the bejeezus out of everybody. Then hope somebody calls for raising taxes.
 
Well, it doesn’t like look Governor Perdue will. Or the Senate leadership.
 
Their calculus is simple: Raising taxes = losing Democratic majorities in 2010. Then, Democrats say, you’ll see real blood on the floor.
 
Sinsheimer and other Democrats reply: How can Democrats lay off teachers and cut back the school year?
 
In my days with Governor Hunt, I saw this dilemma from both sides. He raised the gas tax in 1981. Although Jesse Helms’ Congressional Club – and Carter – pounded him for it, I never thought it caused any real political damage.
 
The teachers did hurt Hunt, though, when they protested his salary freeze. They marched on Hunt just like they did on Governor Perdue.
 
After the Republican takeover in 1994, Hunt proposed even deeper tax cuts – to preempt the Republicans. Later he regretted cutting so much.
 
I feel the pain of both sides. But in a recession, how can you raise taxes on citizens – many of whom are losing their jobs and don’t have health insurance – to pay salaries for people who do have jobs and do have health insurance?
 
One wise Raleigh hand noted Friday that every business in North Carolina has gone though this. The difference is that business, unlike the legislature, gives its department heads authority and flexibility to manage cuts.
 
How much of this pain could be minimized if the legislature simply instructed agencies to cut their total spending 11 or 18 or whatever percent it is?
 
As it is, cynics can say all the wailing and gnashing of teeth is just political posturing – maybe deliberately fostered by the House to generate political cover.

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Gary Pearce

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Are Taxes Political Death?

Joe Sinsheimer came down last week on Mark Mellman, the House Democrats’ pollster, for counseling against raising taxes.
 
(I read this, by the way, on Facebook. Going on it is paying off for me.)
 
Like a lot of Democrats, Joe is enraged about budget cuts proposed in the House. It looks like the budget-writers are going for the terror strategy: scare the bejeezus out of everybody. Then hope somebody calls for raising taxes.
 
Well, it doesn’t like look Governor Perdue will. Or the Senate leadership.
 
Their calculus is simple: Raising taxes = losing Democratic majorities in 2010. Then, Democrats say, you’ll see real blood on the floor.
 
Sinsheimer and other Democrats reply: How can Democrats lay off teachers and cut back the school year?
 
In my days with Governor Hunt, I saw this dilemma from both sides. He raised the gas tax in 1981. Although Jesse Helms’ Congressional Club – and Carter – pounded him for it, I never thought it caused any real political damage.
 
The teachers did hurt Hunt, though, when they protested his salary freeze. They marched on Hunt just like they did on Governor Perdue.
 
After the Republican takeover in 1994, Hunt proposed even deeper tax cuts – to preempt the Republicans. Later he regretted cutting so much.
 
I feel the pain of both sides. But in a recession, how can you raise taxes on citizens – many of whom are losing their jobs and don’t have health insurance – to pay salaries for people who do have jobs and do have health insurance?
 
One wise Raleigh hand noted Friday that every business in North Carolina has gone though this. The difference is that business, unlike the legislature, gives its department heads authority and flexibility to manage cuts.
 
How much of this pain could be minimized if the legislature simply instructed agencies to cut their total spending 11 or 18 or whatever percent it is?
 
As it is, cynics can say all the wailing and gnashing of teeth is just political posturing – maybe deliberately fostered by the House to generate political cover.

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Gary Pearce

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