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MELECKI: Taxes are not state budget, Nebraskans enemy

Published: Tuesday, October 13, 2009

Updated: Friday, October 16, 2009 14:10

No one wants to say it. It's not the popular thing to do. Politicians are too worried about being re-elected to do it, even when it's best for their constituents.

But I'm not afraid to tell the truth. We need to raise taxes. Gasp!

If no one else is going to propose the best solution to our problems, I'll do it. And I'll take the flack for it, too.

We have a multi-trillion dollar budget deficit on the federal level, and now the state is having problems, too. Governor Heineman has called a special session of the Legislature to handle Nebraska's declining state tax receipts and revise the state budget, according to an Oct. 7 Lincoln Journal Star article.

Heineman has a plan for the session – he wants senators to cut the state budget, and to further reduce taxes. The idea is that if Heineman and the Legislature can cut funding to enough state-run programs, he can not only solve the problem of the budget shortage that will be created with declining state taxes but also reduce taxes even more.I'm not even sure he's a Republican anymore. This is just borderline psycho.

Let's check out the state's financial situation. By our constitution, we have to maintain a balanced budget. This is smart. It's something our federal government should think about implementing, once they figure out a way to dig us out of this trillion-dollar trench we're in.

So the Legislature comes up with a plan to keep the budget balanced once every two years, and the governor signs off on it. We've just begun one of these two-year budget cycles, and already the governor wants to amend the plan!

I understand that something needs to be done to adjust for the tax revenue our state was expecting to receive. But there are two problems with Heineman's proposal.

First of all, we're dealing with a loss in income, not a gain. Any idiot knows that you don't reduce your salary when you're having trouble paying the bills. You can either increase your salary (or, in the case of the state, tax revenue) or you can decrease your bills (in the case of the state, state-funded programs).

Depending on where tax revenue is coming from and what state-funded programs you are looking at cutting, either one could be a viable option. We already dramatically reduced funding to state programs when the budget was originally passed this spring. Why are we doing this again?

Second, as Lincoln Sen. Danielle Conrad, a member of the Legislature's Appropriations Committee, told the Journal Star, the governor has the ability, through executive order, to implement cost-saving strategies within agencies that answer to him. There is no need to call a special session, which is going to cost us $10,000 per day, by the way, when we could simply get through November and December based on executive order and then deal with the tax shortage during the regular session!

For a man who's all about saving money, Heineman sure loves to spend money.

But there's a method to his madness, and I've figured it out. Governor Heineman is running for re-election, and voting day is only a year away. He knows that if he cuts taxes now so that Nebraskans are paying less money out-of-pocket, it will take a little while for the effects to set in. Effects such as skyrocketing tuition (you thought this year was expensive? Just wait), poorly maintained highways, and fewer dollars allocated to programs helping seniors, children, and veterans.

Like any good politician, the governor wants to get the most exposure possible out of his little tax-cutting charade. The regular session isn't good enough for him. Too much going on. It takes too long. Plus, the governor's budget cut could get caught up in other legislative news about other things, like programs that can't be funded because our chief executive is cheap.

Is Heineman trying to become Schwarzenegger and make us the next California? I'm sorry but there's a reason I don't live in a state where the Terminator is trying to terminate, err, balance, the budget.

Someone in that Penis of the Plains needs to stand up and take one for the team. Someone needs to propose an increase in taxes because, goddamn it, I want a quality public education where no one's "application" can be rejected. And I want my grandma and my little brother to be able to get flu shots for free this winter because they can't afford them otherwise. And I want to be forced to deal with summer road construction, because it's so much better than the alternative of neglected highways.

I want my taxes raised, and you should, too!

This is the practical viewpoint, the perspective that understands that quality government services require funding. This is the type of viewpoint that should only be maintained by the tough, those who can handle ignorant opposition from people who want to pay less and get more. This is the viewpoint nobody wants to have because we've been taught from day one that taxes are the enemy.

I'm not saying we should have our taxes raised by a huge amount. I'm just saying we need to stop and consider everything we give up when we decide to cut spending.

You may think Heineman is looking out for your pocketbook, but in reality he's only looking out for the polling booths. Don't let him play politics like he owns this place. It's our Nebraska, too.

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8 comments

Lynne
Wed Oct 21 2009 09:35
The author seems not to understand that taxes are painful. Raise taxes, and middle class families have less in their paychecks. Raise taxes, and business become less profitable, and have to make cuts in expenses (bye, bye, jobs). Raise taxes, and fewer businesses move to the state, which decreases the tax base.

The solution is to cut spending--drastically, perhaps--and to rid ourselves of this entitlement mentality. I suspect that the author is not really in taxpaying mode yet, as a student, and is thus still in the "government is an ATM" mode. Government gives nothing to anyone that it hasn't stolen from the labor of someone else.

Troy Wiegand
Fri Oct 16 2009 15:00
"I want a quality public education where no one’s “application” can be rejected. And I want my grandma and my little brother to be able to get flu shots for free this winter because they can’t afford them otherwise. And I want to be forced to deal with summer road construction, because it’s so much better than the alternative of neglected highways."

If you want something work for it yourself! If you or any other member of your family doesn't have the money to pay for something then they don't get it. Just becasue your brother or grandmother are too poor to afford a flu shot does not mean that they automatically have a right to any of my income. It seems that you have a severe entitlement attitude. How do your parents feel about higher taxes? Did they raise you to believe that you don't have to work for anything and that the government will just give you what they need. If they did, then they are piss-poor parents. I'm assuming that they have jobs that bring in the money for you to go here. As for a quality public education, you do not have any right to it. If you can pay for an education they you can have it.

DJC
Fri Oct 16 2009 10:41
When I first read Sam's column, I laughed because I didn't think she was serious. After I read it again, it made me sad. Sad because Sam misunderstands the difference between the federal deficit and federal debt. According to the CBO, we have $1.2 trillion federal budget deficit for this year. We have a federal debt of almost $12 trillion according to the US Treasury Dept. And, we owe almost $106 trillion in Unfunded Liabilites (entitlements)according to the Federal Reserve. Bottomline, the federal gov't is in trouble because they believe that you can tax your way to positive growth. Individuals, businesses and government have to make serious choices and Gov. Heineman is taking a serious look at the budget because he has an elected duty to do so. Some of those tough choices might be to reduce the number of state employees and/or reduce or eliminate some gov't services. If you want to make thoses kinds of choices; file for office. Whatever you do, Sam, I would recommend you take some economics classes because it is pretty safe to say that you don't understand anything about economic theory.
Shane
Fri Oct 16 2009 03:31
For those of you like Sam, who thinks they are not paying enough in taxes, whip out the checkbook, and write the amount you think you should pay to the state treasury. They will gladly accept it. Problem solved.
Gerard Harbison
Thu Oct 15 2009 12:57
It's questionable whether raising state taxes will provide much of a return. Nebraska's taxes are already the highest in the region. Raise them any more, and the only people who will live here will be those who don't pay tax, and those with no alternative.
Todd
Thu Oct 15 2009 12:50
If you want to increase state revenue do not punish the people by increasing taxes and limiting growth. Lower taxes and create incentives to increase the tax base. Create incentives for companies to come to Nebraska. Stop the brain drain from Nebraska to KC, DFW and Denver. There is a reason Texas does not have a state income tax and DFW is a haven for corporate headquarters. Market the University to partner with large companies to bring them in. Use tax incentives to Land large corporations. Benefit from the increase in jobs and higher paying jobs. Benefit from the support companies and vendors that follow.

Doesn't a Political Science student study Reaganomics at some point? Especially, by the time they are a Senior? Even my 11yr old twins understand Supply Side Economics.

Stop looking to the state for hand outs.

Hank
Thu Oct 15 2009 08:54
Sarah, I can't wait until you step out of your college-campus playpen and get out there in the real world.
Tim
Thu Oct 15 2009 05:19
So now you're committed to raising taxes, but who do you go after? The businesses, which are already struggling to stay afloat? The middle class worker, who is already worried enough about finances? Or do you go after the least stable tax base - the rich people? One of the big reasons California is in so much trouble is that they tried to balance the books by overtaxing the rich, except they discovered that whenever a state economy goes bad, the rich lose more than the poor and thus their taxable income will be a lot less than expected. Nebraska's economy has been pretty good so far, but it usually lags behind other states in terms of economic downturns. You definitely wouldn't want to be relying on a small group of people with the least stable amount of wealth in the event of a downturn; you would want a large group of people who collectively have a steady inflow of income. If you're committed to raising state taxes, you don't care who you offend as long as it's right, and you don't want to be the "next California," I'd say the only way to go is to stick it to the middle class.
We'll see if Mr. Heineman goes in that direction or if he finds even more costs to cut.






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