Possible Preview of MN State Budget?

[GopherRock]

Seattle P-I: Frugal budget makes few friends (http://seattlepi.nwsource.com/local/392885_budget19.html)

The state of Washington is a very similar financial position that Minnesota is in ($5.8B short through the end of FY2010). Fresh off a electoral win, Democrat Governor Chris Gregoire unveiled a budget that has everyone howling, even hardened Republicans. The proposed budget was compiled assuming no new taxes.

Could this be a possible preview of the battle at the Legislature over our state's large shortfall?

[Bad Gopher]

Sounds like a similar pickle. Our budget situation here is pretty apolcalyptic. The citizens might not recognize this state once its all over. The people who just want government to disappear may get their wish, and we'll see what that turns out to be like. If we want any semblance of civilization to remain, we'd have to at least turn back the clock to pre-Ventura tax rates. Conventional wisdom says that you don't raise taxes during a recession, but certain fiscal obligations are hard wired into the law, and I'm not sure if we can make ends meet without more revenue.

[hyaluronic]

Well, here is the problem. People seem to think that if the government has a net surplus that it has "overtaxed." Wrong. The government needs to store that money for a rainy day, instead of giving money back to people via rebates or creating new programs. If you don't realize the former, then you are bound to hit this pull back in money now.

During good times we need to have a net surplus. In lean times we should run in deficits. In order to pay back our national debt, we will have to find the surplus more often than not. Like it or not, that favors conservative fiscal principles.

What tax rate is the most optimal? <shrug> If the government taxes at 100% or 0% the net revenue will be zero. The answer is somewhere between.

[Schnoodler]

I believe this is the environment progressive taxation was borne from. Expect it. The government will need revenue, there's only one place to find it.

[Gopher4Life]

You've all heard this before, but apparently it's never sunk in. Revenue is not the problem; excessive spending is. The solution is not to raise more revenue for the bureaucrats to quickly fritter away and then ask for even more. The solution is to reduce spending to more sensible levels. We've been sleeping while the federal government has expanded. A monster is loose and the kill will not be easy.

[Bad Gopher]

4,
If your thesis - that current spending is excessive - turns out to be true, then balancing this budget with only spending cuts ought to be a snap. If it turns out not to be a snap, then I'd have to say your perception of reality is off (i.e. you're dead wrong).