If you don't want casinos, how would you increase state revenue?
By adamg - 3/7/08 - 10:02 am
The Outraged Liberal tries to weigh all sides of the latest casino brouhaha (over that Chamber of Commerce report that mostly, sorta backs the governor's plan) and concludes it's really all about the money:
... The Chamber report restored a little luster to the tarnish that had been building on Deval Patrick, although skepticism can and should remain the order of the day.
But it's also clear that casinos will generate millions in annual revenues for cash-starved state coffers. Skeptics need to be sharpening their own alternatives -- new revenue sources and potential budget cuts -- for what is increasingly likely to be a lengthy, heated battle.
Comments
Cut business taxes
The gov needs to get the private economy going. We missed the entire 2003-2007 expansion because our business taxes are too high, corporate taxes and capital gains taxes.
The legislature raised capital gains before Romney came in and he let it go. The result was weak job growth and now we are paying the price.
Cut the business taxes and you will make up the shortfall in increased individual income tax receipts. Let the little guys get the economy going, and don't rely on the casinos to do it in a big government deal with big business.
Cutting taxes cuts revenue
Cutting taxes cuts revenue.
To increase revenue we could:
* Legalize and tax marijuana and prostitution.
* Increase liquor, cigarette, and gas taxes.
* Enforce collection of current property taxes.
To cut spending we could:
* Cut regulatory staff for anything other than health/safety (i.e. zoning could be cut). This could also stimulate development.
* Save money by increasing penalties for being without health insurance; driving more people into preventive care.
For gambling, I don't see why having huge casinos is such a good idea. Why not just sell permits for slots and poker to anyone who already does Keno? You could keep them small - say, "no more than ten people playing poker, no more than five slot machines" per bar, and limit their hours. Keep the money in the local community instead of sending it all off to the international gambling conglomerates.
explain our weak job growth
Your solutions are as bad as casinos, eating the seed corn for a temporary hit in revenue.
Improving the job outlook for private business is the only solution. Not only will it result in higher income tax receipts for the long term, but it will get more people off the government's bill, on health care for instance.
It probably isn't taxes
High operating costs are a problem in MA - high rents, high energy costs. Poor infrastructure doesn't help, either.
Massachusetts taxes are relatively low compared to most states these days. They have been since the Weld Administration. Taxes aren't the problem - unless you consider all the things they SHOULD pay for and are not - see infrastructure, cost of space, etc. above.
As for health care load dropping, hahahaha. It is as high as it is because too many businesses offer nothing or nothing affordable to their employees. If anything, the government offering health care will help small businesses start up, because the proprietor can have a fall back plan and their employees are covered when the firm is still small. I suppose you haven't noticed how some large businesses have fled to Canada (e.g. Chrysler) because the US healthcare "system" generates excessive administrative costs for them?
The Answer on Jobs
The answer is to get the kind of high paying jobs in the state where people can afford good health insurance. For instance we would get a cheaper plan if we could, but the kids can't break their arm or it goes on the deductible.
I don't support expanding infrastructure at the cost of open space and increased blight. If people had better jobs they would better be able to fight expanding roadways and government/developer collusion to chew up open space. There is a reason why China has wider highways than we do -- it's because the Chinese government can stomp on its people for the benefit of business.
The best way to get private investment in jobs is by cutting investment taxes across the board, and not just for big companies who lobby for it.
Can't just sell permits for slots
If we let anyone have slot machines, then the Wampanoags can automatically have slot machines and could build their resort casino without cutting a deal with the state.
If no one has slot machines, then the Wampanoags are unlikely to build a casino because slots are where the easy money is. That said, in Florida tribes have been allowed to have bingo slots even though the state has outlawed slot machines because they do allow bingo nights. I believe in Texas, however, tribes were blocked from doing similar. This is why there's some urgency to the casino issue. If nothing is done, it will be settled by the courts one way or the other.
What really should happen ....
... is to repeal the federal law that gives this privilege to Indian tribes in the first place.
I'm all for giving tribes some special incentives or preferences to build up industries -- but why this industry?