Center for Budget and Policy Priorities issued Wednesday its report on budget shortfalls. The upcoming fiscal year (FY2012) is shaping up as one of states’ most difficult budget years on record, according to the report. Thus far, some 44 states and the District of Columbia are projecting budget shortfalls totaling $112 billion for fiscal year 2012.
Gov. Rick Scott has proposed tax cuts–$4 billion over two years even though the Florida budget shortfall is estimated to be $3.6 billion, over 14 percent of the total budget.
But he isn’t the only one.
In Iowa, Gov. Terry Branstad wants to cut income and property taxes on businesses and provide $160 million in property tax relief to homeowners. Iowa’s budget shortfall is $186 million.
Wisconsin Gov. Scott Walker signed January in $117 million in tax cuts for businesses. Wisconsin’s budget shortfall is $1.8 billion.
New Jersey Chris Christie proposes nearly $2.5 billion in tax relief and incentives for businesses over the next five years. Budget shortfall: $10.5 billion
Michigan Gov. Rick Snyder proposes cutting the state business tax by 86 percent. Budget shortfall: $1.3 billion
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No one can prove these tax cuts will create jobs or improve the quality of life for the general public. The world is very different from the 1980s when Ronald Reagan pushed for tax cuts.
We live today in a country where few businesses, and even fewer business executives, are in it for the long haul. Too many businesses are built for quick exit strategies and huge compensation packages for the senior management.
Will corporations take their savings from all these tax cuts and simply keep them for their bonuses and stock dividends? Or will the money be reinvested into more capital expenditures, new plants and more workers in this state?
Do corporate execs have a long-term plan for the communities in which they have facilities?
Look around Pensacola so many businesses that helped build up this city are now longer in the hands of the families that started them. They have either been sold to larger outside companies–Chadbourne, Hygeia Coca-Cola, First Mutual, C & P Bank, News-Journal, just to name a few.
There are some notable exceptions like Lewis Bear Company, but