Saturday, 12 January 2008
Law of Unintended Consequences
« The Imperial Abramson and the Cowardly Republicans | Main | Happy Birthday To Me »Ever since Beshear has taken office he has been bitching and moaning about the state of finances in Kentucky. Now he is warning of even more dire circumstances than he originally thought.
The grim budget outlook described by Gov. Steve Beshear in recent weeks is likely to get even worse.
The state Budget Office reported yesterday that General Fund revenue in December was 5.9 percent below that in December 2006.
Through the first six months of the current fiscal year, revenues have declined 0.4 per- cent from the first six months of last year.
"It's just another indication of the severe situation that we're facing," Beshear said yesterday during a talk to a legislative workshop for reporters and editors.
Of course I think this is nothing short of FUD, fear, uncertainty, doubt. I am not saying the budget isn't short, but I don't think it is in the dire circumstances that Beshear is saying.
This ruse is nothing more than a political stunt to get people behind his casinos plan. It is a simple plan. Say the budget is going to be short. Talk about cutting programs. Finish it off by saying that we need new "revenue sources" or we will suffer.
The funny thing is he may have created a situation of unintended consequences that do gooder liberals always commit. He has opened up an avenue for the consummate Democratic desire for higher taxes. Now leading members of the Democrat party are looking at increasing the tax on cigarettes.
On Thursday health advocates noted that Kentucky has the highest rates of smoking and lung cancer among the states and called for an increase of 75 cents a pack in Kentucky's 30-cent-a-pack cigarette tax.
Richards said he agreed with Senate Democratic Leader Ed Worley of Richmond, who said he preferred to consider a cigarette tax increase before cutting education funding.
"Yes I do," Richards said. "… I don't know where we will go with it, but I think there are several of us in the House that would be very interested in looking at the cigarette tax."
This puts Beshear in a tough situation. He can either go along with the tax increases and allow it to be a wedge issue in four years or he can back off his dire predictions for the state government's finances. Either way he is going to look stupid.
My favorite part is they are going after one of the more repressive taxes. Most of those who smoke are in the lower socio-economic scale. Making this a tax that would hit the poorest in society the hardest. But I guess that it is OK as long as the money goes to help the children.
Even better, the tax will cause people to smoke less which means that revenue will fall well below expectations. Leaving us in the same position we are in now. So everyone out there remember to smoke up. It is for the children.
