Here's some
added justification for the state aid bill to provide $35 billion for hiring or rehiring teachers and first responders.
The warning by the State of Washington’s economist was unusually blunt, a far cry from the kind of dry, green-eyeshade language that often cloaks such announcements: “We are in the fragile aftermath of the Great Recession, where a return to normalcy seems like a mirage in the desert — the closer we get to it, the further it moves away.”
The upshot: Washington’s weaker-than-expected tax collections have led the state to project that it will take in $2 billion less than it expected when its two-year budget took effect in July. Gov. Christine Gregoire, a Democrat, called a special legislative session for next month so the state, which has cut $10 billion in spending since the recession began, can weigh more cuts.
Washington is by no means alone: "Florida, California, New York and New Jersey have all seen their tax collections come in below expectations in recent months as the nation has continued to struggle with high joblessness, a weak housing market, a sliding stock market and worries about the European debt crisis."
Putting even a relative handful of people back to work in this climate is critical. So many states are absolutely bleeding. But this bill does more than just put a relative handful of people to work, much more, all for a miniscule 0.5 percent surtax on true millionaires. Greg Sargent has this information from the White House on the impact of the bill on the states of senators who are on the fence about supporting the bill.
* Montana, home to Senator Jon Tester: The aid proposal would provide over $90 million to the state, with the goal of supporting up to 1,400 education jobs—impacting untold thousands more people, the economy, and the state’s future. The 0.5 percent millionaire surtax would impact 0.1 percent of Montana taxpayers—or around 980 people.
* West Virginia, home to Senator Joe Manchin: The aid proposal would provide over $162 million to the state, with the goal of supporting up to 2,600 education jobs — impacting untold thousands more people, the economy, and the state’s future. The 0.5 percent millionaire surtax would impact 0.1 percent of West Virginia taxpayers, or around 1,800 people.
* Maine, home to senators Olympia Snowe and Susan Collins: The aid proposal would provide over $117 million to the state, with the goal of supporting up to 1,800 education jobs — impacting untold thousands more people, the economy, and the state’s future. The 0.5 percent millionaire surtax would impact 0.1 percent of Maine taxpayers, or around 1,300 people.
* Tennessee, home to senators Lamar Alexander and Bob Corker: The aid proposal would provide over $596 million to the state, with the goal of supporting up to 9,400 education jobs — impacting untold thousands more people, the economy, and the state’s future. The 0.5 percent millionaire surtax would impact 0.1 percent of Tennesse taxpayers, or around 6,300 people.
States like Connecticut (Joe Lieberman) and Massachusetts (Scott Brown) have a larger proportion of millionaires, but even in those states, the surtax is minimal and the proposal would ultimately have a positive impact on far more people. And in many of the above states, this couldn’t be more clear cut.
The millionaires' surtax is tiny compared to what this aid could do for the states. It's not spending money we don't have, it's not even really leveling the economic playing field. It's asking the people who can most easily sacrifice just a little to stave the bleeding. And the voters in Massachusetts, and in West Virginia, and in Maine and Connecticut, and Tennessee and particularly in Montana will understand that very well.
The cloture vote for this bill could happen as early as today, if Republicans agree to forego the normal 30 hours of waiting before a cloture vote can occur. Otherwise, the vote will be tomorrow.
11:58 AM PT: Sargent has an update on those numbers and has edited his original post, so head over there to see the changes. But here's one thing the recalculations means: rather than 1,300 Mainers having to pay the surtax, it's actually only 375.