2012 October Budget & Tax News

The October issue of Budget & Tax News reports on California’s borrowing from funds designated for specific purposes – some $4.3 billion worth of borrowing – to fill gaps in the general fund budget.

Also in this issue:

• Atlanta-area voters have rejected a proposed $7 billion transportation tax, even though tax supporters outspent opponents more than 500 to one.

• A little-known or -understood law is scheduled to reappear in 2013, potentially costing those in foreclosure or loan modification thousands of dollars in new tax liabilities.

• Michigan unions are working to land a Protect Our Jobs Amendment on the state’s November ballot. If passed, unions’ collective bargaining rights would be added to the state’s constitution. “I think they should rename it the Drive Our Jobs Away Amendment, said Greg Mourad, vice president of the National Right to Work Committee.

• Carbon taxes have re-entered the political discussion amid reports former Congressman Bob Inglis (R-SC) is building support for a carbon tax swap that would eliminate subsidies for all energy companies, tax all fuels based on carbon emitted during combustion, and refund the new revenue back to taxpayers by cutting taxes on savings and investment. The idea has been endorsed by economists from both sides of the political aisle, from Arthur Laffer on the right to Joseph Stiglitz on the left.

• Pennsylvania’s legislature is considering a measure that would end school property taxes and instead increase income and sales taxes to raise the $13 billion the state spends on K-12 schools. “Whenever we’ve tested it, either in a town hall setting or just asking people to sign on to a petition or … scientific polling, it’s been very well received,” said state Sen. Dave Argall (R-Schuylkill).