Uh oh shaggy....Texas has $27 Billion budget gap

[MasterKiller]

I thought Texas was the crown jewel of red state finances?

http://www.latimes.com/news/local/la-me-texas-budget-20110207,0,4154023.story

The state prides itself as a model of conservative spending and responsible budgeting. But a new $27-billion budget gap undercuts its image as a business-seducing, fiscally adaptive state.

The lecturing from Texas leaders about how California wouldn't be in such a budget mess if its politicians did business the way it is done in Austin has been relentless for years.

Texas Gov. Rick Perry delights in telling tales of his California "hunting trips" — hunting for businesses ready to flee the Golden State.

But the latest budget projections out of Texas have sharply changed the discussion: The Lone Star State is facing a budget gap of about $27 billion, putting it in the same league as California among states facing financial meltdowns. The gap amounts to roughly one-third of the state's budget.

[wenshu]

Easy solution; annexation to Mexico.

I would say we should do the same thing with California, but then I remember, we already did.

[BJJ-Blue]

We'll be fine. We have conservatives running the State, so cuts should be made appropriately, ie entitlements and Gov't get cut first.

We are nowhere near California in terms of trouble. California is to the point where they have written IOUs. :eek: They have unemployment over the national average and one of the worst housing and job markets in the US. We have below average unemployment, and our housing and job markets are at or near the top nationally. We aren't perfect, but our foundation is alot better than California, Michigan, New York, New Jersey, etc.

Speaking of New Jersey, they were in horrible shape until conservative Chris Christie took over. He has made/proposed massive cuts in Gov't, and even took on the Teachers Union. And his approval numbers are through the roof and New Jersey's economic outlook is alot better off than before he was sworn in as Governor. And our Governor is alot more like Christie than he is like Jerry Brown, 'Gray Out' Davis, or John Corzine.

[Syn7]

california has owed more than they are worth to my province for years... and that debt isnt getting smaller... under arnold, its actually gotten worse... and he has no issue with looking us in the eye and saying he aint payin... ofcourse our pus$y politicians keep sending the goods n services anyways coz "our whole economy will colapse if we sell to someone who actually pays"... u kno, like china... big bad red that they are atleast they pay us what they owe...

my quality of life is less than it would be had california payed its debts... and the current governer is making that worse... esspecially with his attack on our film industry... we do the same for less and we live better... dont hate, dow down...

[BJJ-Blue]

my quality of life is less than it would be had california payed its debts... and the current governer is making that worse... esspecially with his attack on our film industry... we do the same for less and we live better... dont hate, dow down...

Well they havn't had a Republican in office since Reagan, correct? And Arnold is a RINO anyway. But unlike his Democrat predecessor, he at least kept the lights on.

When you say "current Governor" in relation to the film industry, are you referring to Arnold or Brown?

[wenshu]

Well they havn't had a Republican in office since Reagan, correct? And Arnold is a RINO anyway. But unlike his Democrat predecessor, he at least kept the lights on.

When you say "current Governor" in relation to the film industry, are you referring to Arnold or Brown?

Cause he raised taxes right. . .?
http://nationalpostcomment.files.wordpress.com/2010/06/01825081_h139664871.jpg?w=620

Who was that guy. . .largest tax increase since the Great Depression . . .

http://www.forbes.com/2010/02/02/barack-obama-ronald-reagan-budget-taxes-opinions-contributors-rob-shapiro.html


Everyone remembers Reagan's 1981 tax cuts. His admirers are less likely to tout the tax hikes he accepted as the 1981 recession and his own tax cuts began to unravel his long-term fiscal picture--a large tax increase on business in 1982, higher payroll taxes enacted in 1983 and higher energy taxes in 1984.

Guess he was just a RINO too . .

[BJJ-Blue]

LMFAO at calling Reagan a tax hiker. Sure, he had to raise them on some things (after all, he had a Democrat Congress most of the time), but he cut the main one that mattered, income taxes. As income taxes affect EVERY working American making over the poverty line, it has the biggest effect on the economy.

And if you look at OVERALL taxes, Americans tax burdens decreased big time under Reagan.

[wenshu]

http://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/index.htm

"Reagan was certainly a tax cutter legislatively, emotionally and ideologically. But for a variety of political reasons, it was hard for him to ignore the cost of his tax cuts," said tax historian Joseph Thorn****.

Two bills passed in 1982 and 1984 together "constituted the biggest tax increase ever enacted during peacetime," Thorn**** said.

The bills didn't raise more revenue by hiking individual income tax rates though. Instead they did it largely through making it tougher to evade taxes, and through "base broadening" -- that is, reducing various federal tax breaks and closing tax loopholes.

For instance, more asset sales became taxable and tax-advantaged contributions and benefits under pension plans were further limited.

"What people forget about Ronald Reagan was that he very much converted to base broadening as a means of reducing deficits and as a means of tax reform," said Eugene Steuerle, an Institute Fellow at the Urban Institute who had helped lay the groundwork for tax reform in 1986 and served as a deputy assistant Treasury secretary during Reagan's second term.

There were other notable tax increases under Reagan.

In 1983, for example, he signed off on Social Security reform legislation that, among other things, accelerated an increase in the payroll tax rate, required that higher-income beneficiaries pay income tax on part of their benefits, and required the self-employed to pay the full payroll tax rate, rather than just the portion normally paid by employees.

The tax reform of 1986, meanwhile, wasn't designed to increase federal tax revenue. But that didn't mean that no one's taxes went up. Because the reform bill eliminated or reduced many tax breaks and shelters, high-income tax filers who previously paid little ended up with bigger tax bills.

[BJJ-Blue]

So what are you trying to say?

He closed loopholes, reduced some tax breaks, and made sure high-income people paid a little more. But even your article said he didn't raise income taxes. And again, that's the biggest tax we have, and the one that affects working Americans the most.

[David Jamieson]

Arnold was/is and has always been a republican party member.

[Syn7]

Well they havn't had a Republican in office since Reagan, correct? And Arnold is a RINO anyway. But unlike his Democrat predecessor, he at least kept the lights on.

When you say "current Governor" in relation to the film industry, are you referring to Arnold or Brown?

sorry... arnold i mean... my bad.... he's really weird about the whole thing... he looks at us like we took from them... back to the debt tho... its not really a partisan issue, nobody is gonna pay... dem or rep, they will push it aside as much as they can... and what are we gonna do about it??? challenge them in some non binding arbitration they will just not listen to if it doesnt go their way? like with softwood lumber, they cried for a ruling, when it came in favor of canada, they decided it wasnt a rule they fealt like following... and lets say a republican ran cali from now on, and they wanted to cut spending, do you think paying us back will be anywhere on their list??? not only that, but they will actually buy less... which actually suits me just fine... we should be selling to china or some1 that will pay for it... alas, we wouldnt wanna upset north american relations... sort of sounds like a handout doesnt it... BC and Alberta Subsidize(sp?) California, what a headline.... not nearly as catchy as "China Owns US" tho, is it...


we gotta give brown a chance at fukcing up before we get on him about it, lol... i was talkin arnold before... how did he do last time he was in the seat??? couldnt have been that bad if he served two terms and still had enough left to do it all over again now....

[Syn7]

saying that arnold should be less responsible because most govs have been dems and he had to deal with their mistakes is the same as saying obama and clinton should be given a break since in the last 40 years the executive branch has had more republican representation than dem... why didnt arnold clean up their mistakes??? thats more fair than getting on obama about not changing everything in the short two years he's been there...

for the record, i think obama is a bit of a pu$sy... he has that sickness that infects so many dems, the punk b1tch spineless sickness... i mean, how many times is this guy gonna sell out his promise and his party??? that being said, i still think he's better than mccain /palin... shes just too stupid to live, and mccain is walking dead... mos def slowing in the head, you can see it in all he does... and the presidency wouldve killed him... look what it did to obama and bush, two healthy guys who looked 20 years older after their elections...

[BJJ-Blue]

saying that arnold should be less responsible because most govs have been dems and he had to deal with their mistakes is the same as saying obama and clinton should be given a break since in the last 40 years the executive branch has had more republican representation than dem... why didnt arnold clean up their mistakes??? thats more fair than getting on obama about not changing everything in the short two years he's been there..

It wasn't a case of having "more representation" by GOP Governors, they had NO representation by GOP Governors since Reagan.

As to why Arnold didn't fix more, there are 2 reasons: 1) The Democrats controlled the legislature 2) He is a RINO

For a success story look at New Jersey under Chris Chrisite.

[MasterKiller]

It wasn't a case of having "more representation" by GOP Governors, they had NO representation by GOP Governors since Reagan.

As to why Arnold didn't fix more, there are 2 reasons: 1) The Democrats controlled the legislature 2) He is a RINO

For a success story look at New Jersey under Chris Chrisite.

So what's Texas' excuse?

[Hebrew Hammer]

Easy solution; annexation to Mexico.

I would say we should do the same thing with California, but then I remember, we already did.

Not annexation, SELL Texas back to Mexico...its the American way and it may help the national debt too.

[Reality_Check]

It wasn't a case of having "more representation" by GOP Governors, they had NO representation by GOP Governors since Reagan.

Pete Wilson (http://en.wikipedia.org/wiki/Pete_Wilson)

George Deukmejian (http://en.wikipedia.org/wiki/George_Deukmejian)

[BJJ-Blue]

So what's Texas' excuse?

We've had ONE year with a budget gap. And Perry has plans to fix it that indeed do involve cutting Gov't expenses and getting rid of a few Gov't agencies. We will be fine.

We also have a 'Rainy Day Fund' we can draw from. Does California? ;)

"The Texas Legislature will balance the budget and will not tap into the Rainy Day Fund or raise taxes.

That was the strong message sent by Gov. Rick Perry in his State of the State address Tuesday.

"Setting aside resources for a rainy day has given us a resource that other states would love to have, and some in our state would love for us to spend dry,” Perry said. “Emptying the savings account to pay for recurring expenses is a bad idea, whether it happens at home, the workplace or in our state budget."

Perry also spoke about cutting several state agencies. He said some of what he called "non-mission-critical" agencies could be suspended until after the recession is over, including the Historical Commission and the Commission on the Arts."

Source: (complete article)
http://austin.ynn.com/content/276509/perry-optimistic-in-state-of-the-state-address

[BJJ-Blue]

RC,

I stand corrected.

But I'd bet the Legislature has been Democrat controlled for at least the last 30 years.