Tuesday, July 15, 2008

BUDGET HOLE DISCUSSIONS PROGRESS

Key Senate Democrats are looking at fixes to the $300 million budget hole recently created by the State Supreme Court. One "fix" that has not been ruled out is a surtax on gambling winnings. It is impermissable, apparently, for the state to tax the state's profitable tribal casinos directly. Taxing an individual's personal gambling winnings is entirely fair game though. A 40% to 60% rate has been thrown about.

The fat casino profits and tight financial constraints of the state are promting some to eye gaming as a fiscal target. One northern Democratic Senator reportedly strongly objects to the premise. Others say that even if it wouldn't bring in enough new funds directly from individual consumers, it would force tribes (especially the Ho Chunk) back to the compact negotiating table.

$300 million does tend to focus the mind.

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