States forget how to cut budgets but love to raise taxes
Governors want to levy higher taxes next year on clothes, soft drinks, gasoline, auto licenses and other items that likely will hit low- and middle-income families struggling to make ends meet in a deepening recession the hardest.
Officials say they are required by law to balance budgets and that tax increases are necessary as state governments face sharply declining tax revenues, but fiscal analysts say raising these taxes during an economic downturn will only worsen local economies and prolong the recession.
One of the most sweeping revenue packages comes out of New York, where Democratic Gov. David A. Paterson wants to raise $4 billion with 137 new or increased taxes and fees in the budget, including an 18 percent so-called "anti-obesity tax" on non-diet soft drinks. Satellite TV, cigars and professional licensing fees also are targets.
"Middle-income families do not get wage increases during a recession, but neither should the states. Families have to cut back, and so should state government. They should cut spending," said Chris Edwards, who tracks state budgets at the libertarian Cato Institute.
My comment: Three cheers for Mr. Edwards however government is not about cutting its growth it is about the current set of liars, scoundrels, ne’er do wells, and assorted sociopaths and losers trying to get reelected by stealing from you and giving it to people who did not earn it. I am hopeful but not holding my breath that Boobus will wake up and go after these "elected officials" who refuse to cut budgets but shamelessly like a tick on a dog or a cancer continue to suck the life out of struggling families by raising taxes.
John Polomny
The Real Deal
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