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Monday, December 26, 2005

Guv can't find 00.2% in budget fat

AP story: Rendell Vetoes Tax Cuts

As any economist worthy of his title would tell Gov. Rendell, using the 5 year total of $1.1 billion is a static (and economically disingenuous) look at the numbers. History demonstrates that tax cuts eventually produce MORE government revenue, not less, in outgoing years.

In addition, Rendell's reasoning for the veto (he can't find a spare $53 million in the budget) is the equivalent of a guy earning $50,000 saying he can't find $109 to reduce in spending over a year. But, of course, that doesn't prevent Rendell from saying 35 out of 48 in the Senate and 183 out of 194 in the House, as well as the taxpayers who fill the government's coffers, "are more interested in their own pocketbooks and less interested in being financially responsible and taking care of critical human needs."

Gotta love the Governor's class warfare, rich versus poor, "haves" versus "haves-less," rhetoric. But then again, it merely reflects Gov. Rendell's belief that Pennsylvania can tax, borrow and spend itself to prosperity. Of course, if Pennsylvania is the next state to do so, it will also be the very FIRST!


Chris said...

Love the blog Matt!

Chris said...

Love the blog, Matt!

Sam Adams said...

I just wonder why the legislature couldn't send up $53 million in spending cuts. Spending money (or not) is their job. As a matter of fact, the legislative leaders slush fund would cover that tax cut twice over.

Unfortunately, I think their aim was more to try and make the governor look bad than giving us real tax cuts.

What a choice, free-spending liberals or fraud conservatives.