October state tax receipt numbers out Monday showed revenues increased $17 million over the same month in 2007. The problem remains, from the taxpayer's perspective, that revenues aren't increasing fast enough to keep up with the increased rate of spending mandated in Frankfort.
As this same scenario continues to play out over the current budget year, it seems that spending cuts, rather than tax increases, would be the preferred prescription to restoring government's fiscal health.
In other news, state lottery revenues continued their upward climb after this year's cuts in advertising expenses for the Kentucky Lottery Corporation. The state's take is up $2.5 million since July.
Monday, November 10, 2008
More proof state overspending is the problem
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4 comments:
Agreed that spending cuts could address the state's spending problem. However, while you criticize spending you never have any solutions.
The most obvious solution is the amount of money spent annually incarcerating non-violent marijuana users. Why don't you have the cojones to address this issue?
And speaking of revenues, the most obvious source could come from authorizing medical marijuana as well as legalizing all things hemp.
Since President-elect Obama has said that he'll call off the DEA dogs from harassing and arresting medical marijuana users in states that have medical marijuana laws, medical marijuana is a good source of state revenue.
California receives about $100 million a year in taxes from the sale of medical marijuana.
There's two easy solutions. 1) Pardon all non-violent marijuana users saving Kentucky about $270 million a year. 2) Authorize medical marijuana.
Kentucky's population is about 1/9th that of California. Using that ratio, that would generate about $11 million a year in additional revenue for Kentucky.
Two goals would be accomplished. Government spending would be reduced for non-essential services; additional revenue would be generated without an increase in taxes.
With all my constant harping on saving money by ending corporate welfare, repealing prevailing wage, clamping down on welfare abuse, improving accounting controls in the school systems, reducing taxpayers' liability for public employee fringe benefits, I'm surprised that you missed all of them.
And my cojones are just fine. Thanks for asking.
David:
I didn't miss all of them. I just didn't respond to all of them. However, I did respond to the prevailing wage.
I've responded about non-essential services. Specifically, the incarceration of non-violent marijuana users which costs the state $270 million a year.
I've responded to accounting for human activity. "If men were angels there would be no need of government" wrote Alexander Hamilton and/or James Madison in Federalist Paper 51.
Taxpayer liability for public employee fringe benefits is a part of the general revenue and the cost of running state government.
I've responded about government. Our founders wanted good government, not less or smaller government.
Grover Norquist is all wet about draining the tub. Such a philosophy brought down the Minnesota bridge. Pawlenty's folly.
Fletcher's "revenue neutral" nonsense led the state into the financial predicament it now finds itself. Fletcher assured us the finances were sound.
Republicans can't manage money. Look at Reagan, Bush's deficits. That's bad Republican management.
The reason for the increase is really easy - people paid their taxes. They filed for a 6 month extension and when it was time to pay up they did.
smart taxpayers played the odds and sat on their cash and made a few bucks of interest.
People learn! for years the government has accepted interest free loans from the taxpayers. Even though the state does charge interest a good investor can usually beat the state's rate and make money on the difference.
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