State Tax Update Archive
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Arizona governor's efforts to raise taxes stumble

The special session, called by Gov. Jane Dee Hull (R), is on its 16^th day costing taxpayers $5,200 a day.  Jeff Groscost, speaker of the House,  has an idea on how to end the impasse.  Groscost is blaming Hull for the lack of action in this special session because she called it without lining up enough support for her plan.  Even Hull's allies are admitting that she never had enough votes to back her plan.

Groscost is letting Hull's plan move forward, but it has been completely gutted eliminating a sales tax increase.  He is rounding up the 31 votes needed to get the plan passed in the House.  He thinks he can bring the measure to the floor of the House this week for a vote. 

Tennessee governor/legislature recovering after being kicked in the teeth, left dazed and confused

After failing three times to pass an income tax, vetoing a smaller excise tax package and failing to pass a tax on radio shows, Gov. Don Sundquist (R-Tenn.) is beaten but not into submission.  He continues to dream of an income tax although he campaigned against it when seeking office.

Meanwhile, the State Assembly leadership, in order to continue state services at current spending levels should the budget impasse not be resolved, has worked out a plan.  Gov. Sundquist, not to be outdone, continues to push for an income tax, but is preparing to submit legislation on how he plans to keep the state running if the budget is not passed by July 1.  House and Senate Joint Budget Conference Committee members are meeting to try to close the $325 million gap between the House and Senate plans.  Tax proposals are still being considered, such as a tax on services, a gross receipts tax, or taxing untaxed goods such as newspapers and magazines.

Louisiana governor finds out he has few friends

Per Gov. Mike Foster's (R-La.) request, the legislature is back for a 10 day special session to approve the budget that would go into effect on July 1.  So far it looks like it is going to go through rather quickly as opposed to the regular session that included increasing taxes by $211 million and cutting the budget gap by $100 million.  The state is projecting an increase in oil revenue to be $38 million, which would cut the $250 million gap.  Other bills up for consideration are a proposal to increase hunting license fees to cover a shortfall in the Wildlife and Fisheries Department and a bill to increase tuition to public universities.

The governor's popularity has fallen quite a bit over the past two months as well as the legislature's according to a poll by several television stations.  This should not be surprising to anyone seeing how he has proposed taxing almost every corporation or person in his own state, just so he can keep spending and spending.  First the VAT (value-added tax), then telecomm taxes, were targeted, then excise taxes, and finally oil and gas, you name it he has tried to raise them.

Corporate welfare gift close to passage in Pa.

In the latest edition of dumb moves: a state that has a few hundred million dollar surplus is moving to pass a tax on tourists (aka not my constituents). The revenue generated from this tax will be used for corporate welfare, in this case advertising hotels and counties in the hopes of drawing even more unsuspecting tourists.

The state just considered the largest tax cut in history, cut death taxes and has a huge budget surplus.  Now if one happens to believe that this corporate welfare is needed (we do not), then why not use some of the existing budget surplus? Why pass a local option sales tax?  Because legislators will exclaim that they did not raise taxes, localities did.  Hope these legislators stay in Pennsylvania, cause no telling what damage they may cause in Washington, D.C.

Hero and Enemy

Joint heroes for June are Steve Gill and Phil Valentine of WLAC and Darryl Ankarlo and Dave Ramsey of WTN, Radio personality 6/15/00 for leading opposition to Tennessee income tax.  Meanwhile the Enemy of the Month goes to Assemblywomen Aroner and Migden from California for proposing and passing an Internet tax in the Assembly.