Lottery lurks behind tax increases
My column today:
Just wondering how Gov. Mike Easley and his advisers came up with their proposed budget...
"I've got two priorities this year, folks: full funding for my education initiatives and getting a lottery to pay some of the cost. What are my chances?"
"There's a lot of momentum for schools, governor. You've got a mandate from the voters, the courts are pushing for more spending, and almost every legislator campaigned on a pro-education platform."
"Great. Now, how about the lottery? How's it look to you, Frank?"
"Still a tough call, governor. The coalition of conservative and liberal opponents carries a lot of weight. The Senate is supportive and resistance in the House is weakening, but it's just not a sure thing."
"We've got to make it a sure thing. I want $400 million from a lottery in my budget. What about it, Dan?"
"I wouldn't write that money into the budget, governor. We made that mistake once. We were accused of counting our chickens before they were hatched, and we ended up with egg on our face."
"I don't need a reminder. I need $400 million."
"We can raise taxes by $400 million, governor."
"Dan, I'm glad you weren't writing my speeches during the campaign. Patrick Ballantine might be sitting here right now if I'd talked about raising taxes."
"Sorry, sir. I'm just a budget guy, not a politician."
"Well, what we need is a little more political thinking."
"Wait a minute, governor. Maybe Dan has come up with a good strategy here."
"What’s your idea, Frank?"
"Just this, sir: Sometimes in politics you ask for what you don't want in order to get what you do."
"Go on."
"You want a lottery, but you can't include lottery money in the budget. Instead, you ask for tax increases. Lots of 'em. And the more unpopular, the better."
"What are you thinking of, Frank?"
"The sales tax. Extend the half-cent increase that was supposed to sunset this summer."
"I said I wanted to get rid of that."
"Yes, sir, but you have to play hardball. Those liberal activists who cry about the lottery hurting the poor will have a fit. They'll have to spend so much political capital fighting the sales tax that they'll run out of bullets to shoot at the lottery."
"Governor, there are other specific sales-tax levies we could raise, too: on cable TV, telephone calls, liquor, candy, even movie tickets. Not to mention cigarettes."
"Could we add newspapers? I'm sick of those editorial writers bashing me about the lottery."
"Yes, sir. Newspapers are ripe for a sales tax."
"Those are good ideas, Dan. But remember, governor, the goal is not necessarily to actually raise all those taxes but to create a hue and cry across the state. I mean, people aren't going to be happy about paying higher taxes on their cable bills or to go to the movies. And you know the publishers will scream. They think they've got some kind of constitutional immunity from taxation."
"Let them scream. They can't get their way all the time."
"Yes, sir. But what we really want is a trade-off here. The whole state will rebel at the idea of so many tax increases. You'll be accused of taxing everything but air. Then you can answer ..."
"I know what I can answer: Let's have a lottery. Then we won't need to raise all these taxes. We can afford more spending for schools without forcing a single person to pay. Playing the lottery is completely voluntary. Besides, lotteries in all our neighboring states are draining money from our schools here in North Carolina."
"That's exactly what you can say, governor. The lottery is popular, except for a few naysayers, and it will plug a big hole in the budget. And even some of the critics might drop their opposition if they'd have to pay higher taxes instead. Those publishers might order their editorial writers to lay off the lottery if we'll drop the newspaper tax."
"That's the plan, then. Dan, write me a budget with lots of new spending and a whole bunch of crazy tax hikes in it. I want everyone in this state who buys a movie ticket and a candy bar begging for a lottery."
Comments (1)
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You know, the scary thing about this whole conversation is that it probably took place just about like this. You either have a good imagination or a mole in place one. Either way, you hit the nail on the head.
Posted on March 8, 2005 9:50 AM