The major elements of the emerging House approach to the budget are essentially the same as in the Governor’s proposal, except that, instead of casino revenues, the House proposes to levy a cigarette tax.
There are remaining differences about the exact parameters of the corporate tax increase, but the broad outlines appear to be set — some of the major reforms proposed by the corporate tax commission will be adopted, and there will be some limited rate reduction that results in net increased revenue, at least in FY09.
While reasonable people can differ about the numbers for the corporate rates, I am comfortable with the House approach as it is emerging — it represents a major coming together with the Governor and a major step forward.