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Indiana Republican Governor Proposes Tax Increase to Erase State's Deficit

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NNN0LHI Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 04:16 AM
Original message
Indiana Republican Governor Proposes Tax Increase to Erase State's Deficit
http://ap.tbo.com/ap/breaking/MGB1OKM6J5E.html

INDIANAPOLIS (AP) - Gov. Mitch Daniels proudly displays a samurai sword in his office, a remnant of the days when President Bush nicknamed him "The Blade" for his prowess in cutting taxes and federal spending.


But now the former White House budget director - and Indiana's first Republican governor since 1988 - has proposed a one-year tax increase to slice away at the state's $645 million deficit.

Critics say the move contradicts not only Daniels' reputation as a fiscal conservative, but GOP tradition itself.

"This is the fastest any governor claiming to be a Reagan Republican has folded under the pressure of big-spending interests," said Grover Norquist, president of Americans for Tax Reform, a conservative group that in 2002 hailed Daniels as its "strongest ally in the administration."

more

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purduejake Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 04:25 AM
Response to Original message
1. I'm not sure who is having their taxes raised...
whether it is the rich, middle-class, poor, or all of them. I guess he could have made even more cuts to education or social programs rather than raise taxes, so I give him credit for that, but he is still an ass when it comes to civil rights and human decency.
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theorist Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 04:29 AM
Response to Reply #1
2. Master plan: raise taxes AND cut education/social programs
Here's the quote:

"Under the plan, the income tax rate would increase by 1 percentage point for those making more than $100,000 this year. It also calls for freezing education funding and reining in soaring Medicaid costs."

A longtime Hoosier told me that those making $100,000+ are in the top 0.5% in the state of Indiana. Does that sound about right?
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BiggJawn Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 12:44 PM
Response to Reply #1
8. People who make over 100 Kilobucks
In other words, nobody on *MY* Festivus card list...

Oh, and there will be ANOTHER cigarette tax increase, which is an ipso-facto tax on the poor, because WHO smokes most the cigarettes in Indiana? Why, the poor bastards who get the EIC and listen to EIB, that's who....
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hadrons Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 06:31 AM
Response to Original message
3. Daniels isn't the only Repuke to do this ...
Conversions on the Road to Reality
A number right-wing Washington, D.C. politicians have headed back to their states as newly-elected governors. And their behavior, once they leave Beltway fantasyland for the real world, shows just how out of touch today’s conservative ideology is with solving real problems. For instance, as a congressman, Ernie Fletcher was a reliable vote for Bush administration cuts to health care and Medicaid. Now, as governor of Kentucky, Fletcher told Fox News in January that he’s “very concerned about any cuts” to Medicaid proposed by the President. Similarly, as a congressman, Bob Riley was a reliable vote for Bush-backed tax cuts to the richest 1 percent of the country. But as governor of Alabama, Riley pushed a statewide initiative to raise taxes on the rich and wealthy corporations.

But perhaps the biggest hypocrite of all is Mitch Daniels. As President Bush’s Budget Director, Daniels was a top point man in ramming massive tax cuts for the wealthy through Congress, and gutting spending for critical programs. Now, as governor of Indiana, he is facing the ramifications of his actions in Washington - and proposing exactly what he railed against. See for yourself:

THEN:
“It’s especially risky to talk about let alone a jack up today’s level of taxation.”
- White House Budget Director Mitch Daniels, 2/5/02

NOW:
“Gov. Mitch Daniels called for a one percent income tax increase to help balance Indiana’s budget.”
- Indianapolis Star, 2/20/05

THEN:
is truly committed to cutting back the size of government.”
- Cato Institute fellow Stephen Moore on Daniels efforts to gut spending on safety net programs, 1/20/03

NOW:
“Instead of immediately shrinking state government expanded it, creating a Department of Child Services.”
- NY Times, 2/20/05

In some ways, it is laudable that Daniels and other right-wingers are embracing more progressive positions. But the sincerity of their ideological conversion is dubious - they are merely up against budgetary reality, and desperate for solutions.

And that is exactly why what they are doing is so dangerous to conservative hacks like Grover Norquist. The actions of Daniels and his fellow converts, motivated by a need to address reality rather than push ideology, provides proof that the progressive agenda can better address America’s real-world challenges.

http://thinkprogress.org/index.php?p=286#more-286

"This is the fastest any governor claiming to be a Reagan Republican has folded under the pressure of big-spending interests," said Grover Norquist

As for this clown Grover, here are some of the tax increases during the Reagan years:

In 1982 over $230 billion in tax increases. This included the Tax Equity and Fiscal Responsibility Act (TEFRA), the biggest tax hike in history up to that time, $214 billion in its first five years, or $2,562 per household. As chairman of the Senate Finance Committee, Bob Dole was key to convincing the Reagan White House to go along with the massive tax hike. Without TEFRA, Dole said at the time, "the deficits wouldn't go down." The deficit soon shot to record heights anyway.

In 1983, Social Security tax increases, a seies of automatic tax increases totalling $58 billion in the first five years, or $691 per household.

In 1984, Finance Chairman Dole steamrolled through the $132 billion Deficit Reduction Act (DEFRA), totalling $890 per household.

In 1985, $13 billion Consolidated Omnibus Reconciliation Act(COBRA) bill totalling $150 per household.

In 1986, increase capital-gains taxes in a trade-off which reduced marginal income tax rates, all part of the "revenue neutral" Tax Reform Act. In addition to nearly $23 billion in other assorted tax

Sounds like Daniels IS a Reagan Republican ... boo-hoo to the well-off Repukes who voted for him
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LynnTheDem Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 06:54 AM
Response to Original message
4. And another rightwingnut HYPOCRITE proves rightwing ideology doesn't work
THEN:
"It's especially risky to talk about let alone a jack up today's level of taxation."
- White House Budget Director Mitch Daniels, 2/5/02

NOW:
"Gov. Mitch Daniels called for a one percent income tax increase to help balance Indiana's budget."
- Indianapolis Star, 2/20/05

THEN:
" is truly committed to cutting back the size of government."

- Cato Institute fellow Stephen Moore on Daniels efforts to gut spending on safety net programs, 1/20/03

NOW:
"Instead of immediately shrinking state government expanded it, creating a Department of Child Services."
- NY Times, 2/20/05

In some ways, it is laudable that Daniels and other right-wingers are embracing more progressive positions. But the sincerity of their ideological conversion is dubious - they are merely up against budgetary reality, and desperate for solutions.

http://www.dailykos.com/story/2005/2/21/125229/962
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TheFarseer Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 10:34 AM
Response to Original message
5. just blame it on liberals and do it
Taxes should be determined by the revenue needs of your state, not by if people want their taxes raised. Caue they they won't, ever! ANd who cares what the reputation of the governor is?! I suppose if Carl Lewis fell off a boat he should just drown because he's not known as a swimmer!
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RedEarth Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 11:42 AM
Response to Original message
6. Tax-Cutting Ind. (repub)Governor Proposes Hike(Bush called him The Blade)
INDIANAPOLIS -- Gov. Mitch Daniels proudly displays a samurai sword in his office, a remnant of the days when President Bush nicknamed him "The Blade" for his prowess in cutting taxes and federal spending.

But now the former White House budget director -- and Indiana's first Republican governor since 1988 -- has proposed a one-year tax increase to slice away at the state's $645 million deficit.

Critics say the move contradicts not only Daniels' reputation as a fiscal conservative, but GOP tradition itself.

"This is the fastest any governor claiming to be a Reagan Republican has folded under the pressure of big-spending interests," said Grover Norquist, president of Americans for Tax Reform, a conservative group that in 2002 hailed Daniels as its "strongest ally in the administration."

The Wall Street Journal, in a recent editorial titled "Mitch the Knife," chastised Daniels for his "pocketbook raid," saying Republican governors in states such as Maryland and Texas have closed larger budget gaps than Daniels faces without raising taxes.

http://www.newsday.com/news/nationworld/wire/sns-ap-indiana-governor,0,1222706.story?coll=sns-ap-nationworld-headlines
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TahitiNut Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 11:44 AM
Response to Reply #6
7. They're only attacking him because it's a fair tax increase on the wealthy
It asks those who've benefited the most to pay the costs of a system that's tilted in their favor. Fascist right-wingers want the poorest to pay for the system that benefits the wealthiest. They're sociopaths!

If Daniels had raised taxes on the poorest only, they'd be patting him on the back.
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BiggJawn Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-23-05 12:47 PM
Response to Reply #6
9. A Katana, huh?
Don't suppose he follows Bushi-Do, I suppose....

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