No tax cuts now

No money for tax cuts it would seem.

Gov. Sonny Perdue said Monday the state’s flagging economy is making it necessary to cut millions of dollars from the budget.
Perdue said months of sluggish tax collections mean the state may not bring in enough money to meet its budget for the current fiscal year. Instead of dipping into a $1.5 billion reserve fund, Perdue wants Georgia to tighten its belt in case even tougher economic times are ahead.

Oh, and apparently hell has frozen. The AP notes that

Lt. Gov. Casey Cagle said in a statement that he agreed with the governor’s move to reduce spending.

“It is always our goal to lead in a fiscally responsible manner,” Cagle said.

There was no immediate comment from House Speaker Glenn Richardson.

Since when?!

5 comments

  1. suwtiger says:

    So who is telling the truth here? The house is working to pass a 1 billion car tag tax cut (if a cut is based on future revenues/taxes that we will all share in sending to the state over the next couple of years) and now the Governor says we have to make cuts because we dont have the money going forward due to the economy not generating the required sales and income taxes. I cant be the only person a little confused. Is Sonny making all this up or is the Speaker clueless on what is happening with the State’s finances. Another possibility is the Speaker knew all this, but wanted to pass something so bad that it didnt matter.

  2. CHelf says:

    This is a different position taken by many at the federal level of the GOP who think tax cuts even at a time like this might spur the economy. So who is right and who is saying the other side is wrong?

  3. IndyInjun says:

    CHelf,

    The state does not have a Fed that creates money out of thin air to fund operations, nor can it run deficits, aside from the gamesmanship with debt.

    The dirty secret of the revenue increases after the Kennedy, Reagan, and Bush tax cuts is that money supply increased by virtue of the Fed, thereby stoking the economy and taxes derived therefrom.

    We both know that this is a GOP/Laffer totem that cannot be assailed, so I guess here comes the usual firestorm……

  4. CHelf says:

    So the concept of tax cuts only is sound when they’ve gouged us to the point of having a surplus and in good economic times? It seems the only impetus for cutting spending is when less money is coming in. Perhaps going with that logic we need to stop money coming in to bring about even more budget cuts. Imagine that. A GOP majority who not only cuts spending but cuts taxes as well.

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