Signs That States Are Not Cutting Spending

Despite giving lip service to the problem of budget deficits and out-of-control spending, it's becoming clear that some states are not doing much more than that. Washington state in particular seems to be afflicted with this problem.

"There was a lot of talk two months ago about making deep cuts in spending and reducing the size of state government to help close a $2.8 billion budget shortfall.

Yet as the legislative session nears an end, spending is on track to increase. Lawmakers are planning cuts but have apparently set aside efforts to streamline state government that many feel could ease future budget problems."

Politicians of all stripes refuse to make the tough choices that are required of them. As a result, taxpayers will simply have to clean house at the state and federal level in November in order to get the government that they want (and can afford).

Washington Governor Goes after Candy

In a non-serious attempt to make a very small $600m dent in a massive $2.8b budget deficit, Washington Democratic Governor Christine Gregoire has proposed a tax hike on various industries.

"Her package includes collecting sales taxes for candy, soda and bottled water and tripling the tax on cigarettes. She also proposed tripling a tax on hazardous substances, including oil and chemicals and adding taxes for out-of-state companies that do business in Washington."

How in the world does the Governor think that adding sales tax to the price of candy will fix the fiscal mess that the state of Washington is in?

This seems like another ridiculous idea from a politician too afraid of entrenched interests (read: unions) to do what she should be doing (read: slash spending).

Until this Governor grows up and obtains some political courage, expect the budget mess in Washington state to continue.

Washington State Voters Rally Against Tax Hikes

In a warning to their entrenched state lawmakers, thousands of Washington state taxpayers rallied yesterday to protest against any new state taxes.

"Thousands of taxpayers rallied in the state capital Monday, promising a reckoning in November if lawmakers and Gov. Chris Gregoire move ahead with proposals to raise taxes."

In an interesting plot twist, a counter-rally then occurred in which proponents of a tax increase gathered to send the opposite message.

"The anti-tax forces had hardly dispersed before an even bigger crowd of students, unionized workers and others gathered with the opposite message: The state should bring in more money so it can preserve vital services."

These competing rallies foreshadow the oncoming tax battles to be held at the state level throughout the country

First, taxpayers tired of giving up their hard-earned property rally to attempt to dissuade state government from taking even more of their property.

Then, beneficiaries of the state's theft rally to insist that yes, more goods should be stolen from taxpayers.

Those on the receiving end of the state's largess, particularly union members and students, need to start looking for alternative ways to support themselves since taxpayer's of all stripes are growing increasingly weary of their demands for more assistance.