Gov. Rick Perry went on an Austin television program yesterday and announced, to the surprise of absolutely no one, that there will be a projected $800 million deficit by the end of the year in the fund used to pay unemployment benefits. What Perry conveniently neglected to say is why this deficit will occur so it's up to others to remind the world that the deficit is the result of Perry last year suspending the collection of the unemployment tax that feeds the fund. Maybe he thought we would all have short memories and forget this bonehead move of his.
Of course, Texas could receive $555 million as part of the federal stimulus package, but Perry, placing partisan politics above statesmanship and doing the right thing, has, of course, rejected that money. So what is he going to do? He's decided to raise taxes on businesses. Glenn Smith put it quite accurately when wrote in the Burnt Orange report:
So Perry is going to charge businesses hundreds of millions of dollars now to avoid a possible (and greatly reduced) tax increase a decade from now. Perry wanted to say 'no' to something, and he picked this. It doesn't get much more ridiculous than this. ... Now he's compounding the problem with his schoolyard, partisan posturing. Hardworking Texans and small business will pay the price for Perry's theatrics.
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