Posted: October 28, 2011 at 5:47 pm

New Analysis: GOP Ginned Up Fake Budget Crisis to Undercut Jobs, Schools

Republican legislators conspired to gin up a fake budget crisis to undercut jobs, public school classrooms, and seniors. A new analysis by Tax Analyst [pdf], out this week, spells out the whole debacle in detail. Here’s what went down.

Exactly one month before the 2010 election, the GOP legislature’s economic forecaster predicted a $400 million dollar budget deficit.

Even though Governor Schweitzer and his budget director explained why the prediction was inaccurate, the GOP refrain “$400 million dollar budget deficit” was parroted by the media. Recall that the Billings Gazette sent out a questionnaire to every candidate asking what cuts they will propose to the budget to make up for the supposed $400 dollar deficit?

Legislative fiscal analysts predict that by June 30, 2013, there will be a $366 million state budget deficit with no money in reserve. How specifically would you balance the budget? What specific government services are you prepared to cut, by millions of dollars if necessary, and which government services would you preserve?

Then, by repeatedly feeding the “we’re bankrupt” lie to the electorate, TEA Party republicans rode the wave of fear and paranoia into state legislative office, claiming they were needed to help combat the supposed budget crisis.

The Governor again called it a fantasy, but the fraud continued. The legislature claimed that the drastic cuts they made to those hardest hit by the recession (seniors, veterans, school children and the disabled) were made necessary by a $400 million dollar deficit that wasn’t real.

As soon as the legislative session was over, the legislative staff admitted that their numbers were (badly) off. They claimed to be “surprised” by how wrong they had been, the Tax Analyst analysis explains. State Senator Ron Erickson (D) gave a scathing response, saying he and other Dems weren’t surprised, as the Governor had been saying that the deficit prediction was wrong from the beginning.

Montana has $300-400 million dollars left in the bank that could have been used to create jobs, to help the needy and to make sure school kids have a bright future. Now, GOP gubernatorial candidates are trying to continue the deception to bring about their own elections. They, too, will claim a spending crisis and the need for immediate budget cuts. This time, however, the GOP’s record of deceiving the public for political gain will stand in their way.

Posted: May 25, 2011 at 6:22 am

You’ve Got to Wonder

It was reported this week that some 3,700 stimulus act contractors owe $750 million in back taxes, according to a Government Accountability Office (GAO) report.

Area contractors like Helena Sand and Gravel and Swank Enterprises received millions in tax dollars from the recovery act. You have got to wonder how much these companies or, in the case of Helena Sand and Gravel, their forgein parent company CRH The International Building Materials Group owe in back taxes.

Don’t forget republicans legislators protected tax cheats all session and last session tried to give Swank Enterprises a big taxpayer bailout.

SB 222 (Dick Barrett, D-Missoula) would have raised $4.3 million in new revenue over the next two years by requiring out-of-state residents to pay their fair share.

SB 94 (Erickson, D-Missoula) sought to limit tax avoidance by multi-national corporations, in order to maintain funding for important public programs and services.

Republicans killed both measures. Montanans will forgo over $40 million in taxes owed by mostly out-of-staters and international PHARMA corporations as schools in Great Falls are laying off teachers.

I hope someone asks GOP legislators why they insisted on protecting the out-of-state multinational corporations from paying the taxes they owe. After all, when out-of-staters evade their tax bills, ordinary Montanans pay higher taxes, and it gives them a competitive advantage over our main street businesses.

Also, word on the street has it that the Montana Contractors Association that held the secret republican caucus meetings all session in order to avoid public scrutiny. Hopefully the GAO will make public the list of the stimulus tax cheats.