Are extreme tax hikes during a recovery brave or foolish?

CT Governor Dannel Malloy has released his budget and it is a doozy. In an attempt to close the budget gap, he is proposing huge tax increases on nearly everyone and everything.

In one of the largest and most wide-ranging tax increases in Connecticut history, taxes on income, cigarettes, alcohol, gasoline, and estates would all increase under Gov. Dannel P. Malloy's budget proposal to be unveiled Wednesday.

The current 6 percent sales tax would also rise for the first time since the state income tax was created in 1991 - to 6.25 percent...Malloy is also seeking to eliminate the sales-tax free week, which is popular among families as it is held in August for back-to-school shopping. Overall, Malloy is proposing more than 50 different tax changes in a package that would increase taxes by $1.5 billion in the first year and $1.34 billion in the second year.

The taxes are so wide-ranging that they would touch anyone who earns a salary, drives a car, gets a haircut, buys clothing, sleeps in a hotel, takes yoga lessons, pays for a manicure, smokes cigarettes, drinks alcohol or takes a poodle to get a haircut.

I am not sure what to think of the governor at this point. On the one hand, this is a courageous move in the era of the Tea Party. While CT is about as blue as they come, there are plenty of anti-tax protesters ready to come out in force. On the other hand, this seems sure to stifle any nascent economic recovery in the cradle and drive businesses out of the state altogether.

Then again, "brave" and "foolhardy" are not always mutually-exclusive terms. Here's hoping the CT Congress can moderate these terms into something the state can live with. Otherwise, it may be time to think about checking out job opportunities elsewhere.

Ned Runs for Governor

Millionaire businessman Ned Lamont will announce Thursday that he is running for Governor of Connecticut. Lamont is best known for wrestling the Democratic Senatorial nomination away from Joe Lieberman in 2006. Lieberman still went on to win as an Independent. If Connecticut trends like Tuesday's Governor races, then Lamont will be too Liberal to be elected.

NY Governor still possible out for Hillary?

A little while back when Elliot Spitzer admitted his affair, I suggested that perhaps this offered a way out for Hillary Clinton from the Presidential race. Leaving the race to take over as governor of New York State would be a way to save face and not have to consider herself the loser of the primary. And it would solidify Democratic control of both a major state and (perhaps) the White House. But, this idea wilted on the vine in light of the accolades for the first minority, disabled governor of New York was widely lauded by Democrats.

But now, things are a-changing.

http://news.yahoo.com/s/ap/20080325/ap_on_re_us/ny_governor

Governor Patterson has had to admit to multiple affairs, drug use, and other criminal acts. None (yet) have been lethal to his fledgling political career. But it may only be a matter of time before New Yorkers have had enough and either call for impeachment, or drive him to resignation. If so, it opens another possible window for Hillary Clinton to exit the race without declaring defeat. Who knows?

Then again, Senator Clinton has not yet shown the ability to recognize an opportunity to retreat.

Spitzer hands Hillary a way out?

Elliot Spitzer, New York State Governor, appears to have been implicated in a scandal among politicians who frequented Washington D.C. prostitutes. He has NOT said he will resign, but the pressure to do so will be huge.

Spitzer2
by krs601

What does this mean for the rest of us? Maybe an end to the Democratic stalemate. If Hillary Clinton were to drop out of the presidential race in order to become the heir apparent to governor of New York, it would be seen as a move "for the good of my constituents". And it would give her executive experience to make a 2012 or 2016 run for president much more credible, even after an Obama presidency.

Of course, the Lieutenant Governor of New York state probably has other plans for the top office.