Gov. Perdue: Georgia Can’t Afford Supply-Side Economics During The Recession
Gov. Perdue: Georgia Can’t Afford Supply-Side Economics During The Recession
During the debate over the economic stimulus — while most state budgets were deeply in the red — the House GOP unanimously opposed the recovery package, arguing in favor of more tax cuts for the wealthy. Highlighting a schism in the party, however, several GOP governors, such as Gov. Arnold Schwarzenegger, Gov. Charlie Crist (FL), and John Huntsman (UT), readily accepted the federal aid.
In a comment marking a break with the Reagan-embracing hard right, Georgia Gov. Sonny Perdue (R) raised skepticism about the GOP philosophy of using supply-side tax cuts to plug budget deficits:
In essence, Perdue said the economic theories espoused by Ronald Reagan and Jack Kemp — that lower taxes actually generate more government revenue — are a gamble that don’t have a place in Georgia. Not in hard times.
Here’s what Perdue said, as aired on Friday: “Georgia’s a balanced budget state. And it’s very difficult to do the stimulus-type bills in a state that’s starved for revenue and cash at the same time. So that kind of destroys a supply-side theory within a state government.”
Listen here:
Perdue was responding to pressure from Republican state legislators to sign the “Jobs, Opportunity, and Business Success Act of 2009,” a businesss tax cut-centered bill that would cost $340 million a year in lost revenue. True to conservative form, the legislation cuts the state capital gains tax in half. The bill would also be a “substantial tax increase on most low- and middleincome Georgians,” notes the Institute on Taxation and Economic Policy
Indeed, supply-side tax cuts tilted towards big business and the wealthy are anti-stimulative during a deep recession, and do not lead to appreciable gains in revenue for cash-starved budgets.
Perdue’s comments mark a stark departure from the rhetoric of the House GOP leadership, Govs. Bobby Jindal (R-LA) and Mark Sanford (R-SC), and Newt Gingrich — all of whom are resistant to anything other than tax cuts. In an interview with Time, Rep. Patrick McHenry (R-NC) said of the GOP, “Marginal tax rates are the lowest they’ve been in generations, and all we can talk about is tax cuts.”
It remains to be seen, of course, if Perdue will buckle to right-wing pressure and sign the supply-side legislation. Perdue signed significant business tax breaks just last week.
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Perdue: “One of my daddy’s chickens in every pot. But it’ll cost ya!”
Okay, so he’s not in the same family, but he still looks freshly plucked to me!
PEACE
May 11th, 2009 at 1:45 pmIt remains to be seen, of course, if Perdue will buckle to right-wing pressure and sign the supply-side legislation.
If not? Lush Rimjob will banish him from the GOP.
May 11th, 2009 at 1:47 pmuhoh….this automaton is going to get a call……his braintube got unhooked from the GOP thinking point website.
May 11th, 2009 at 1:48 pm.
Did he clear this with (R)ush Limpballs?
If not…
… Let the tea bagging begin!
.
May 11th, 2009 at 1:49 pmHe’s in the special class, so he gets credit for trying.
May 11th, 2009 at 1:53 pmWell, Governor? Do you represent and govern your state or kiss the Boss’s butt. Time will tell.
For the sake of your constituents, I hope you stick to your guns.
May 11th, 2009 at 1:53 pmHe’ll buckle because republicans are weak and easily bullied.
Tax-cuts and torture: where’s the proof that they work? It seems if the golden tax-cut worked, the economy would be stronger than ever right now and there would be more jobs, not less.
May 11th, 2009 at 1:54 pm“In essence, Perdue said the economic theories espoused by Ronald Reagan and Jack Kemp — that lower taxes actually generate more government revenue — are a gamble that don’t have a place in Georgia. Not in hard times.”
They don’t have a place in any state, in ANY times! Tax changes create financial strategies on either side of the change, to minimize tax liability. They only give the appearance of increasing revenue for a year. Averaged over a five or ten year period, activity settles to normal and shows NO advantage to lowering taxes. Higher taxes create economic stability by keeping capital reinvested in businesses to avoid excess profits subject to taxing.
RANDI RHODES RETURNS!
Progressive radio talk show host Randi Rhodes is back on the air today at 3pm Eastern, Noon pacific time! This is good news for those who have missed her since the demise of NovaM took her off the air in February.
Now for the bad news: her new employer is Premiere Radio Network. This is the same outfit that syndicates Rush Limbought, Sean Insannity, Glenn Beck, and other wingnut rotwingers of all-hate radio. It remains to be seen if Randi can thrive in such an anti-progressive environment.
My favorite place to stream Progressive Talk is KPOJ Portland, Oregon, home station of Thom Hartmann. However, The Randi Rhodes Show will NOT be live on KPOJ, as I had hoped. The only station carrying her live, that I could find, is KTLK Los Angeles.
KPOJ, will carry her show on tape delay, following the also tape delayed Ed Schultz show. Presumably, contracts will have to expire before things settle down in Progressive Talk Radio.
May 11th, 2009 at 2:00 pmOT… but, WTF???
Another Planned NYC Military Fly Over Cancelled
May 11th, 2009 at 2:08 pmABC News – ?38 minutes ago?
By MARK CRUDELE and RICHARD ESPOSITO A military fly-over planned for New York City this morning was cancelled by the Federal Aviation Administration shortly before the plane was set to roar down the Hudson, over the harbor and up to Maine.
NYC Navy flight canceled 2 weeks after jet panic The Associated Press
Military flight over Hudson River canceled Times Herald-Record
Huffington Post – Wall Street Journal – Bloomberg – NJ.com
all 57 news articles »
http://news.google.com/news/more?pz=1&ned=us&ncl=d4a_nnFIU_A6oqMMWY1GAT7B3sHfM&topic=n
This man must not be running for re-election. His conscience is showing…
May 11th, 2009 at 2:12 pmHas Limbaugh shit on him yet and if so has he apologized yet?
May 11th, 2009 at 2:16 pmThere is hope for the republicans! Thank goodness at least one of them has caught on.
Federal tax burden is relatively low and yet all that most republi-bots can do is tea-bag and complain. It’s about time someone stated the obvious. Thank you, Governor Perdue.
May 11th, 2009 at 2:33 pm“Perdue show’s he ain’t chicken.”
May 11th, 2009 at 2:35 pmI wish Atlanta could secede from GA. It is an island of progress in a sea of stupidity.
Rural GA voters see anything that benefits Atlanta as “helping the darkies” and vote against it. They are too ignorant to realize that Atlanta is Georgia’s only real revenue generator.
May 11th, 2009 at 2:37 pm“supply-side tax cuts tilted towards big business and the wealthy are anti-stimulative during a deep recession, and do not lead to appreciable gains in revenue for cash-starved budgets.”
Inacurate… The cited article used to illustrate the point uses the last two supply-side cuts against only the 1993 tax increases. But those increases came at a point during the .com boom which exagerated actual wealth and resulted in the .com bust. Previous tax increases tell a far different story of economic slow down. Try telling the whole picture here, and refrain from printing opinion as fact.
May 11th, 2009 at 2:43 pmThe GOP economic plan has two main problems. According to their logic:
1. If we get rid of taxes altogether, the economy will be perfect.
2. If this actually worked, the economy would be wonderful right now. Bush’s tax cuts have not yet expired and Obama hasn’t raised any.
May 11th, 2009 at 2:44 pmmuncien
HERE is a fact. Revenues DROPPED after Rayguns tax cut. HERE is a fact even Bushs own economic adivors like Mainkew and his other tax cuts enthusiasts admit that tax cuts do not even PAY FOR THEMSELVES much less increase revenue. It IS a fact that the economy boomed and had the longest peacetime expanision in HISTORY after the tax increase on the wealthy in 93 it is NOT a fact that this was due solely to the high tech bubble. Perhaps YOU should stop putting up YOUR opinion as FACT.
May 11th, 2009 at 3:03 pmI’d like to point out to ThinkProgress that there are TWO Governor Perdues in this country, and when I first saw the headline, I thought this item was about our governor here in North Carolina (and wondering why she was talking about Georgia).
Of course, OUR Governor Perdue is a Democrat, always supported the federal recovery package, and has been working her butt off to make sure North Carolina gets the most bang out of our share of it. And she hasn’t been a hypocrite.
Still — if you put “Gov. Perdue” in a headline, could you qualify it with a “Sonny” or a “Bev”?
May 11th, 2009 at 3:03 pmCutting taxes for the well-off is the old horse-and-sparrow theory of finance. You know, if you feed enough oats to the horse, there’ll be some left over for the sparrow.
May 11th, 2009 at 3:23 pmDuring these very tough economic times, it’s important to remember that we already have it so good in this country relative to many people around the world living in developing countries. I think that the U.S. should do more address global poverty for strategic and humanitarian purposes. The Borgen Project has good info on the estimated cost of ending global poverty:
$30 billion: Annual shortfall to end world hunger.
$550 billion: U.S. Defense budget.
May 11th, 2009 at 4:02 pmI hear somolia has the lowest tax rates in the world…$0.00.
I am wondering when people in the US will start pointing to Somolia as the pre-eminant example of how well our lives would be if we we’re not burdened with taxes or regulations for that matter.
I’m sure the repugs would like to see a nation without taxes. So when is a reporter going to ask a repug that question????
HOW MUCH TAXES SHOULD WE PAY???? HOW MUCH TAXES SHOULD THE WEATHTY PAY???
May 11th, 2009 at 4:08 pmWe’re a georgia blog and we are just getting a kick out of this and the reaction of local Republicans:
http://ugaliberal.blogspot.com/2009/05/governor-perdue-left-wing-republican.html
May 11th, 2009 at 4:10 pmNot so, Tommy. Everyone in the rest of the state knows all too well that Atlanta is the economic engine of the state, witness the large bank here about to go under because of its gambles on your Real Estate. And we aren’t raving with the stupid either.
For that matter, Perdue. not from Atlanta or environs, gets a lot of grief when, in fact, all along he has been more moderate and sane and rational than those idiots in the State legislature, a large number of whom hail from those infamous Atlanta suburbs, which have put the patent on conservative. After all, where is the Newt’s original stomping grounds?
May 11th, 2009 at 5:47 pmPerdue never has wanted to disavow the stimulus money. Our problem is that the Democratic party is a weak sister in the state with no viable charismatic leadership with the result that we end up with an overwhelmingly rigidly right state legislature falling all over itself to undo rational programs and policies: like allowing billboard companies to raze trees for a nominal fee and erect those god-awful billboards, as if we didn’t have enough already.
Isn’t this the same republitard who organized a prayer virgil at the state capitol to pray for rain?
Fools!
May 11th, 2009 at 5:48 pmWhen are these lies going to be recognized as lies concealed behind some slight-of-economic-formula-hand and die?
Reducing taxes does not stimulate economic activity. Economic activity is stimulated by the opportunity to make a decent product or provide a decent service that people want to buy at a price that yields a decent profit causes people to start a business. But it is up to the jobs that are created to actually stimulate the economy.
People who have needs AND money to spend expands the economy.
Paper profits on Wall Street derivatives are no indication of economic growth.
Just look at the recent bailouts; questionable Wall Street practices and products are a drain on the economy, and everyone who made a profit on Wall Street over the last 10 years should be charged a surtax to repay the Public Treasury for the harm they caused.
Reducing capital gains taxes encourages idleness in the midst of the ranks of the wealthy, and idle minds that create schemes leading to troubles for the rest of us.
May 11th, 2009 at 6:01 pmJohn F. Kennedy once said “A rising tide lifts all boats.” Unfortunatly the “tide” that he was refering to in his analogy for the economy has now become a tidal wave of socialism that will capsize and sink the all of the “boats”.
May 13th, 2009 at 3:36 pmIn response to NOLIESPLEASE (21) who wrote:
“I hear somolia has the lowest tax rates in the world…$0.00.
That figure is not true. In Somolia, direct taxes are imposed on income and profits, when officials can collect them. Tax rates on wages and salaries ranged from 0% to 18.9%. Income from trade and the professions was taxed at rates of up to 35%. Indirect taxes are imposed on imports, exports, mortgages, vehicle registration, sugar, alcohol, and a number of other goods and services. In 2003, Somolia’s sales tax rate was 10%.
Source: http://www.nationsencyclopedia.com/Africa/Somalia.html
NOLIESPLEASE, You are welcome for the correction. Next time please try not to tell a lie and base your argument on facts instead of hearsay. It just makes you look ignorant.
May 13th, 2009 at 4:14 pmthank you. Beatifull Archile !
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May 18th, 2009 at 1:36 pm