In a desperate search to plug multimillion-dollar holes in the Georgia budget, legislators are looking at raising some of 1,700 different fees the state charges for various services and licenses.
That’s probably not a bad idea. Some of the fees haven’t been raised in over 50 years, and few come close to actually paying for the services the state renders.
Moreover, the state has to look at everything: Already facing a budget shortfall of $1 billion, Gov. Sonny Perdue last week announced the state would be taking in another $443 million less in revenue than earlier expected.
Legislative leaders say they want to avoid raising taxes at all costs, as well they should. As the governor said so well last week, the government must now hit the reset button and rethink everything it has been doing.
“We’re taking a step back from a lot of things that were nice to do in good times,” the Republican governor said.
Having said that, a word of caution: If legislators think they can raise $100 million in “fees,” as is their goal, and pat themselves on the back for not raising taxes, they’re playing games with words. In either case, be it fees or taxes, the money still gets sucked out of the private sector.
They need to make that an absolute last resort.
They should also keep in mind that, while big budget cuts are painful, necessary reductions present a historic opportunity to “right-size” the government.
Governments at every level across the country have gorged themselves on the fortunes of the private sector in recent decades. But the check has arrived at the table.
It’s a good time to look under the couch cushions, as it were. So take a look at the various fee schedules and see if they can be brought more up to date.
But if tax increases are what you’re really doing, let’s not try to be coy about it.
Yeah, ain't it something what the future brings, but it's the only way. Checking account says, zip.
Hopefully, a few years down the road, our present economic climate will be looked upon as a time when Georgia politicians made the right choices and protected the best interests of the citizens. We can only hope! Now we have to raise our voices and wag a finger at the big boys in D.C. Governors who make tough decisions are scorned, while Presidents who spend money that doesn't exist are applauded.
Many of the vote buying "services" need to be reexamined and many of the special "services" for state politicians need to be reexamined. Just those two items should take care of half of the billion dollar short fall.
I think that the "hospital tax" ranks among the worst ideas I've heard. I favor consumption taxes because most of these are discretionary spending and people can cut back on their use. These include raising taxes on tobacco and alcohol. I also favor a tax on junk food. As far as gasoline goes, I favor raising state taxes on this commodity too. People who depend on a vehicle for their business can save their fuel stubs, record their required mileage, and deduct it as a cost of doing business on their income tax returns.
The local,state and federal government are failing the american people.its time for another american revolution and its growing stronger every passing day.
The politicians in GA and the ones in Washington need to come back to earth and just use plain common sense. Here it is folks. Get a true, realistic forecast of revenues. Take two swacks at the budget. First time through cut out all nice to have items, give-away programs, subsidies, etc. Second time through make every item left in the budget take an across the board cut of x% until the revenue matches the outgo. And that includes payments on the deficit. Not just break even interest payments. I mean actually start paying down the deficit. When the economy starts turning around and the revenues start going up, do not start bringing back wasteful spending programs. Take that extra revenue and pay more on the deficit. It's common sense. Too bad that our over educated politicians can't handle simple math and basic economics. Balance the checkbook and live within your income. Any meth head with a stolen credit card could go to Washington or Atlanta and do what our politicians have been doing. We supposedly elect these guys because they are smart but I certainly don't see the product that would prove the hypothesis.
dichotomy. You're right, it is common sense. Even my young kids know they can't spend more than they make. It's just not that difficult a concept.
But common sense, fiscal discipline and politics are never discussed together. It's all about power. They lust for power, control and votes and they will spend and spend and spend to get it - until we are all living in cardboard boxes.
We need Dave Ramsey in the White House. Suze Orman can take Pelosi's spot and Clark Howard can take Reid's place. This November, go to the polls and elect only those committed to balancing the budget and paying off our debt.
You're right dichotomy. It's basic money management, and unfortunately there are a lot of nice folks that just are not good at it. I am all for going through budgets and taking out unncecessary spending then looking again and taking out nice to have stuff in tough times like today. But as most proposition X Californians are finding out, you cannot have necessary services without taxes. In a tax cutting frenzy, you are basically cutting off your main source of revenue. In times like these it's even worse because there are good folks who want to pay their taxes; but just cannot. So after we get the unnecessary spending in line and keep it there, then we start to raise taxes a little at a time. It would be easy to start with the rich folks who had them cut under Bush/Cheney and then go from there. And once the tax revenue is stabilized then keep it level and above all do not under any circumstances increase the spending on unnecessary things. That's how we got into this mess in the first place. It's so simple, yet people make it so complicated. And start teaching money management in high school too. Kids will love the course, and it will benefit them later in life! Unless of course they decide to go into Politics.
Well said guys. Some just don't get it. The government encourages these types instead of encouraging the producers in our society.
GAterp - there are very, very few necessary government services. Federal and state budgets could and shoud be cut in half. It wouldn't be difficult.
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