Does Hutchison favor raising small business unemployment taxes?

Austin American-Statesman:

U.S. Sen. Kay Bailey Hutchison today knocked Gov. Rick Perry for not accepting federal stimulus dollars to expand unemployment benefits, signaling that she’s ready to start fighting Perry on issues head-on.

Hutchison, who is running against Perry in the 2010 Republican primary, issued a statement to the American-Statesman calling the governor’s rejection of unemployment dollars irresponsible.

“Governor Perry recklessly turned down the federal unemployment insurance money,” Hutchison said. “He never even looked at cutting the ridiculous federal strings attached to that money like I would have done. He didn’t even attempt to negotiate a way to relieve employers from a tax increase while helping Texans affected by the economic downturn.”

She pointed out that the state took billions in unemployment money to close a budget gap.

“But now, because of a purely political decision to turn down UI funding, Texas has to go into debt and beg the federal government for a $650 million loan,” she said. “And like all loans, this one has to be paid back. And who will pay it back? Texas businesses and hard-working taxpayers already facing enormous hardships.

“It’s not conservative. It’s irresponsible.”

For months, Hutchison has not clearly said whether she agreed with Perry’s decision on the stimulus dollars.

In March, Perry rejected $555 million in stimulus dollars to expand unemployment benefits. He said in an op-ed posted by the American-Statesman on Thursday, “In return for less than seven weeks of unemployment benefits, this $555 million stimulus payment would have required Texas to permanently expand its unemployment program and burden Texas job creators with higher taxes for the long haul. Those stimulus dollars would have done more harm than good for Texas workers, employers and taxpayers, which is precisely why the Texas Association of Business and National Federation of Independent Business urged and supported my decision to reject the federal unemployment stimulus funds.”

...

I think Hutchison is making a mistake by not addressing the concerns that motivated Perry to reject this portion of the stimulus and by doing so she probably plays into his argument about being more connected to Washington than the concerns of people in Texas.

The article points out that the state could opt out of the program when the funding runs out, but that fails to consider the political hit. The state would be put in the position of raising taxes or taking a political hit on lowering benefits. Of course, that is exacly what the Demcorats intended when the drafted the legislation and Hutchison needs to explain why the state should fall into that trap.

While her position might have some appeal to Democrat voters, it is hard to see how it will help her in a Republican primary. I am open to an explanation.

Comments

Post a Comment

Popular posts from this blog

Should Republicans go ahead and add Supreme Court Justices to head off Democrats

Washington Post: Some Democrats eye adding more justices to the Supreme Court to change its ideological bent The once-remote idea has gained the attention of liberals angered by the GOP push to remake the federal courts. Probably the easy way to defeat this court-packing scheme is for Trump to propose doing the same thing now.  It would lead to Democrat denunciations and claims that it would be wrong, thereby blowing up any attempt by them in the unfortunate event of Democrats winning a presidential election.
Read more

29 % of companies say they are unlikely to keep insurance after Obamacare

Conn Carroll: A new survey of 368 midsize to large companies found that 29% of them are considering terminating their active employee health care plans when Obamacare is full implemented in 2014. Only 71% of employers surveyed said they did not expect to drop their health coverage, while 20% said they did not know and 9% said they were planning to exit. The latest survey, conducted by Towers Watson, echoes an ealier survey by McKinsey & Co. finding that 30% of private-sector employers were planning to drop their employee health insurance coverage by 2014. When the Congressional Budget Office crunched Obamacare's spending numbers, they estimated that only 7% of employees currently covered by employer-sponsored plans would lose their plans. ... This means the cost of the health care fiasco will be hundreds of billions more than estimated by the CBO and Congressional Democrat. It is also clear that Obama's pledge that you could keep your health care plan if you wanted t
Read more

Bin Laden's concern about Zarqawi's remains

James Robbins: ... Bin Laden suggests that President Bush should allow Zarqawi’s body to be returned to his family in Jordan, but this is a matter that is up to the Jordanian government, which so far has not shown much interest in facilitating a homecoming. Bin Laden mocks King Abdullah II, calling him a Coalition minion, and asking “w hat scares you about Abu Musab after he’s dead? You know that his funeral, if allowed to happen, would be a huge funeral showing the extent of sympathy with the mujahedin.” A large crowd would definitely turn out, though most people would be on hand to demonstrate their anger and disgust. Last November’s hotel bombings in Amman , masterminded by Zarqawi, are still fresh in people’s memory, and mentioning them to Jordanians has the same visceral impact as memory of the 9/11 attacks does here. Jordan has adopted a zero-tolerance policy towards those who choose to mourn the country’s least favorite son, and four opposition members of parliament who paid con
Read more