Budget Urgency, Taxes, and Related Downers

It's the day before Thanksgiving, so I'll spend little time on the depressing themes associated with the state budget. Surely, everyone must be hoping for a dramatic bounce on Black Friday, though analysts don't expect larger crowds to mean more robust sales - more people spending less. Let's hope the bleak forecasts are mistaken. Regardless, the budget hole won't be fixed by holiday shopping, a reality budget writers are forced to confront quickly.The Spokesman Review has joined the chorus urging the governor and legislators to act swiftly. 

Gov. Chris Gregoire needs to put together a supplemental budget soon. She should move fast on any cuts she can make without legislative approval. The Legislature might be tempted to wait for the next revenue forecast, on Feb. 18, before getting serious about cuts. But dithering is costly, because cuts made in March or beyond won’t bring in the same savings as cuts made sooner.

The editorial acknowledges talk of tax hikes, but warns of their negative effect on a fragile economy.

Hat tip to Jason Mercier at the Washington Policy Blog and to TVW for posting the governor's budget video. It's a grim presentation of the choices she'll be making in the budget she intends to release December 8.

The Evergreen Freedom Foundation's Amber Gunn takes to Crosscut to urge lawmakers to call a special session and revisit the Priorities of Government. Neither is likely this year, but give her credit for identifying alternatives.

Peter Callaghan uses his column to discuss more likely prospects for the session.

...Democrats think some of the burden must be borne by higher taxes. They will look at eliminating tax loopholes (or "tax incentives," if you get one). They will look at so-called sin taxes on booze and cigarettes.

But each loophole is loved by someone with a well-paid lobbyist. And sin taxes don't raise as much money as some imagine.

Like it or not, Democrats will have to consider the big three: sales, property, and business and occupation taxes.

There may also be discussion of the "millionaire's tax" discussed last session. Here's how that's working out in Maryland.

While the Maryland comptroller’s analysis makes no conclusions about the reasons behind the sharp drop in millionaires — though everyone acknowledges that the recession played a big role — it does note that 542 millionaires who filed returns in Maryland in 2007 did not do so last year.

Folks still have choices...and some chose to leave.