Tax & Spend: TN Dems Prove That’s Their Mantra During This Year’s Budget Debate

As the budget debate wages in the Tennessee General Assembly, Gov. Bredesen and State House & Senate Democrats have thrown multiple plans on the table. So what distinguishes one from another? That’s the wrong question. A better question is what makes them all similar? The answer – an appalling tax-and-spend theme that is going to put the budget shortfall onus on hard-working Tennessee families.

The proposals outlined by Democrats focus on three ways in which to tax and/or spend Tennesseans’ dollars. The plans call for hiking taxes on already cash-strapped Tennesseans, significantly raiding the state’s emergency rainy day reserve, or doling out taxpayers’ hard-earned dollars for potentially wasteful projects or projects that shouldn’t be a priority during these tough economic times. What’s missing from the proposals are attempts to tighten the state government’s belt that would take the budget shortfall responsibility off the backs of Tennessee taxpayers.

Following is a number of media reports that highlight Democrats’ tax-and/or-spend budget proposals that have been released thus far:

GOVERNOR PHIL BREDESEN’S PROPOSAL

  • “The governor had hoped to plug a $150 million budget gap through a series of revenue measures. They included eliminating a sales tax cap on big-ticket items, restoring the sales tax on the first $15 of cable bills and increasing annual driver license fees by $2.” (”TN Senate Democratic leader proposes alternative budget plan,” Associated Press, 05/19/10)
  • “The House Republican Caucus leadership today called upon Governor Phil Bredesen ‘to stop proposing new tax increases as a way to balance the budget’… The group said the ‘$85 million tax increase would be in addition to $50 million the administration has called for by increasing taxes on cable television, cable television boxes, business telephone services, and free hotel breakfasts. In total, Bredesen has proposed over $130 million in new taxes this year alone.’” (”House Republican Leadership Denounces ‘$85 million Tax Increase,’” Chattanoogan, 04/21/10)

SENATE DEMOCRATS’ PROPOSAL

  • “It would spend about $142 million more from the state’s reserve funds than the governor wanted and reduces Bredesen’s proposed 3 percent pay bonus for state employees and teachers to 2 percent… ‘There are a lot of things in there that are acceptable to us,’ said Senate Finance Committee Chairman Randy McNally, R-Oak Ridge. But he added that there were concerns about dipping too deeply into reserves and funding of ‘local projects.’ The Kyle plan leaves intact a plan to spend $16 million developing a fish hatchery in Carter County… (”Kyle Floats State Budget Proposal,” Knoxville News Sentinel, 05/19/10)

HOUSE DEMOCRATS’ PROPOSAL

  • “House Democratic leaders say they will push the use of reserves as an alternative to a Senate GOP plan that makes more than $100 million in cuts…While Democrats oppose the cuts, they aren’t falling all over themselves to go with the governor’s proposed tax increase. Instead, they turned to the state’s still considerable reserves.” (”Tennessee: House Democrats Push Use of Reserves for Budget,” Chattanooga Times Free Press, 05/12/10)

Once again, Democrats are proving that the only “solutions” they have for an ailing budget are more taxes and more spending. Republicans on the other hand believe that when the state is facing a budget shortfall, government shouldn’t delve deeper into taxpayers’ pocketbooks or find ways in which to spend more money. Instead, Republicans show leadership by making difficult decisions about ways in which government can operate more efficiently. After all, Tennessee families have had to find ways in which to tighten their belts, why shouldn’t their government?


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