"States of Prosperity (or Not)" [ A GREAT idea in Colorado !!! ]

Wall St. Journal ^ | July 16, 2002 | Editorial

[The Raven]

As the nation's governors meet in Boise, Idaho to share tales of woe about a slower economy, it's a good time to ask why some states have bigger budget problems than others. California is a debacle, for example, with a $23 billion deficit and Governor Gray Davis scrounging for revenue. But in Colorado this year, Governor Bill Owens delivered a balanced budget and $927 million in tax rebates.

[The Raven]

In Colorado, government spending was restrained by a 1993 constitutional amendment called the Taxpayer Bill of Rights. The law requires voter approval for any tax increases and limits increases in state spending to inflation plus population growth. This meant that even in the fat years, state politicians couldn't spend all of their revenue windfall.

What an absolutely wonderful idea!!!! Why don't we have this [Taxpayer Bill of Rights] in every Local, State and Federal government???

We just went through this here in Tennessee....When times are good...the government spends (OCSD- obsessive compulsive spending disorder). When times are bad....the government taxes (producing more revenues when the slump ends).

This scheme is so obvious. Revenues go up. The legislatures create more PERMANENT government. They take an incrementally bigger bite of the economy.

Everybody knows how to spend and everybody has a pet project…since few have discipline – the Colorado experiment is a winner !!!

Let's do this in Tennessee. Let's do this everywhere. How do we start?

[Balding_Eagle]

Douglas Bruce, the man who created the TABOR amendment which forces the government to get permission before raising taxes, is one of the most hated men by Colorado officials.

A badge to be worn proudly for sure, but officials work overtime to try and make his life miserable.

[mo]

We need to apply revised corporate accounting practices to the Feds as wel.....

[The Raven]

Ping---FYI---WSJ Editorial -- Good read!

[wyodude]

It seems that Washington state had a referendum about 3 years ago that was similar to Colorado's constitutional amendment. IIRC, the state legislature had to put any spending increases above some level up to a popular vote. I moved just as this was being implemented. Can anyone comment on how well it worked or whether it worked at all?

[GailA]

TN has busted the Constitutional budget cap of 5.45% every year for at least the past decade. It only requires a simple majority to do so. That needs to be changed ASAP. BUT you and I know the demon-rat controled GA will NOT do so.

[Richard Kimball]

Nationwide, alas, California is more common than Colorado, with states facing a combined $40 billion to $50 billion deficit.

This gives you an idea of just how out of control the US gov't is. All states combined have a $50 billion deficit. US has 6 trillion on the books, and a total unfunded liability of approximately $20 trillion. Oh, well, guess we need a few new government programs to figure out why this is happening.

[q_an_a]

Someone should send this to Simon and every other Republican,have them take the pledge and use sound government to "defend the shores, delivery essential service and leave us alone."

[The Raven]

Instead of simple majority we need voter approval

[nicmarlo]

Douglas Bruce, the man who created the TABOR amendment which forces the government to get permission before raising taxes, is one of the most hated men by Colorado officials.

This is very true. And the Rats keep trying to find ways to get around the TABOR amendment......scare tactics is one way. In fact, last election was yet another attempt. (I can't recall specifically what the proposition was, but it failed!). The people of Colorado, generally, are of pretty sound mind. It's just some areas are kooks or lefties who want to dictate their unsound proposals on the rest of the state, so they elect left wingers (Boulder, Denver, Steamboat Springs come to mind). Then, of course, Romer (or his Rat predecessor) appointed lots of liberals judges (Chief Justice McLarky, Bender come to mind) which doesn't help politically. McLarky was in favor of an unfair redistricting proposal, which would have favored the Rats. It was shot down.

[GailA]

AMEN! at all levels. From State, to county, to city government. It would put a stop to them spending out tax dollars on sports arenas without our approval.

[JDGreen123]

Yes, it is hard to imagine the government enforcing any standards on the business world when the government mismanages money like this:

InsightMag.com 8-15-01

The Defense Department cannot account for $1.1 trillion that seems to have vanished within the tangled system of financial accounting put in place by private contractors.

Every year trillions of dollars are unaccounted for by federal agencies, and every year these same agencies are called before congressional oversight committees to explain this mismanagement of taxpayers' funds.

DOD Can't Find $1.1 TRILLION-Rumsfeld Inherits Financial Disaster

The NEA also could not account for a similar large amount of cash. Must be lots of active accounts in the Grand Cayman Islands. Maybe we ought to invade there next and get all of our money back.

[JDGreen123]

Here is a good summary of the Tabor amendment & its history:

The TABOR Amendment: Learning To Live Within Colorado's Tax & Spending Limits

By Dr. Barry Poulson, Senior Fellow

Issue Paper Number 9-2001; December 2001

TABOR imposes two types of tax and spending limits, both substantive and procedural limits. The substantive limit imposes a cap on the amount of revenue that governments can keep and spend. TABOR imposes a cap on state revenue growth equal to inflation and population growth. The cap applies to a broad definition of state revenue including general funds and cash funds, with a few exceptions.

The procedural limit requires voter approval for governments to raise taxes, or to keep excess revenue over the cap.

The TABOR Amendment: Learning To Live Within Colorado's Tax & Spending Limits

[taxcontrol]

You will see me post, from time to time, this very idea. However, the Colorado tax amendment is in my opinion, to complex to implement at a National level. However, I do agree that a limit needs to be placed on Congress's ability to tax.

As a Coloradan (Coloradian ?) - I do have some issues with the amendment but would rather have it than not.

The acutal Tax payer bill of rights can be found here: http://i2i.org/Publications/ColoradoConstitution/cnart10.htm

[The Raven]

Thanks for the info.......PS- it's certainly better than the current system - they tax us - and spend the money. Where's the controls?

[The Raven]

That would make a good post.....

[Constitution Day]

Among the worst tax-hike culprits, North Carolina has raised sales and income taxes by $1 billion, having increased spending by $7 billion over the past decade.

NC Ping!
Thank you Tom D. for posting this on the NC Freeper page.

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[callisto]

An excellent idea...an automatic political restraint on spending. Based on those figures I'd say this law is just what we need in NC.

[Flashman_at_the_charge]

A ping for a must read article for all Californians who are dreading a Davis win.