Hunter: Taxes from the House will address “once-in-a-century” budget problem

“In this budget cycle, we’ve dealt with a change in our expected budget picture of about $12 billion,” Rep. Ross Hunter said. “We’ve dealt with about $11 billion of that problem” with cuts, federal funds and other actions to address “what we hope is really a once-in-a-century budget problem.”

Watch live on TVW now and read-along here by updating your browser.

He said he’s laying out a five-piece, $758 million revenue package. “Part one, we’ve made changes to House Bill 3176 and we’re incorporating them into the larger bill, which we will hear tomorrow in Finance” at 9 a.m. That was Hunter’s earlier bill to close tax loopholes and end exemptions. “We’ve made real changes. We’re going to use the funds from this to deal with maintaining the lower class sizes … and maintaining financial aid for college students.” He said the original plan has been out for three weeks.

Part three removes sales tax exemptions on some products and services — like elective plastic surgery, candy and gum, custom software, janitorial services and sales tax on bottled water. “This is very different from the governor’s proposal,” he said.

See the entire plan in the post below.

First question: Does he have 50 votes for the plan? “I can’t tell you I’ve got exactly 50 today … unlike many other proposals that are floating around today, I think this one’s pretty likely.”

He said he’s not a fan of increasing the sales tax. “A large percent of that are paid by small business across the state,” he said. What the House tries to do, however, is “close loopholes” and end exemptions that may not be fair in the current economy.

“There are a number of larger proposals that people both inside and outside the Legislature has made. This one is smaller than many, larger than sum,” he said. He said he believes they’ll be able to move the House plan off the floor this week.

“The Senate has not moved their package and I don’t see that happening today. I’m making a proposal — this is now the third proposal,” he said.

Are the cuts and taxes permanent or tempoerary. “I don’t remember on every one… I think most of these are permanent adjustments,” he said.

Biggest difference between Senate and House, besides no sales tax increase: “We have a different mix.”

Tags: House, taxes