Big Jumps in Taxes Loom in 10 States

Discussion in 'Economics' started by ASusilovic, Apr 9, 2009.

  1. A free fall in tax revenue is driving more state lawmakers to turn to broad-based tax increases in a bid to close widening budget gaps.

    At least 10 states are considering some kind of major increase in sales or income taxes: Arizona, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, Oregon, Washington and Wisconsin. California and New York lawmakers already have agreed on multibillion-dollar tax increases that went into effect earlier this year.

    Fiscal experts say more states are likely to try to raise tax revenue in coming months, especially once they tally the latest shortfalls from April 15 income-tax filings, often the biggest single source of funds for the 43 states that levy them.

    Good luck with the US recovery talk...:D
  2. The key issue with the states is they are not laying off workers, this is an important lesson for private industry. GM et al are going about this all backwards.

    To use my GM vs state example. They should not lay off anyone, and secondly they should raise prices on everything. This keeps people employed, price increases? well they may or may not bring in more revenue but ya gotta keep on trying, that's really all we know how to do on the state level.

    Currently the only problem I see with this model, is employees checks may bounce when you run out of money. No biggee, thats what banks and bailouts are for.

    Rather than just hand over shitload of dimes to corporate bosses (saving the plane fare to DC or wear and tear on the corvair) the man on the street is the beneficiary, when the POS bank of America processes the GM check, the check clears through Feds.
  3. yeah, raise prices on everything, now is the prefect time to see inflation really kick in. (?!?)
  4. This is why I love Texas
  5. The US economy is 70% consumer + 10% residential real estate. If taxes are raised to an excessive level all that will do is reduce consumption and can actually create a greater shortfall in tax revenue with higher unemployment.

    Of course none of the states are going to cut down on the prison-industrial complex or stop spending millions of dollars to prosecute 30 year old teachers for statutory rape with their 16 year old students just to make tabloid headlines, you have to draw the line somewhere and services MUST be cut.

    Lower US consumption means less foreign imports. At this rate our Asian creditors will have no choice but to sell their foreign exchange reserves in order to attempt to prevent civil unrest. Japan is looking terrible right now, they have a massive demographic issue that needs to be addressed or they will suffer the consquences in the intermediate term.
  6. clacy


    It's almost time for a conservative revolution. And I'm not taling a Republican revolution, but a CONSERVATIVE revolution. Reduce spending, keep taxes low. Maybe, just maybe the electorate will figure out that the people that we put in office are corrupt and incompetent.

    The only problem is that so may people pay little or no taxes and the rest of us foot the bill for everyone.
  7. clacy wrote""Reduce spending, keep taxes low. Maybe, just maybe the electorate will figure out that the people that we put in office are corrupt and incompetent.""
    We wish!
    I'm glad I'm in The Lone Star State, but we've got our problems too.
  8. This is such a HUGE problem!

    1. Under NObama, it's soon to become fact that > 50% pay NO Federal Income Tax.

    2. The "no tax" group will become the biggest voting block in the populace.... even bigger than AARP (though many of those are included in the no-tax group)

    3. Future elections and policies will pander to this group.... each party promising more and more "for free"... in exchange for votes.

    4. How can this EVER be reversed?

    The path to economic recovery and vitality has to be one which is "tax and business friendly"... that is, LOWER taxes spread over the largest possible tax base... so that foreign companies will bring their capital and business here and employ unemployed Americans. We're currently screaming down the path of "higher taxes on an ever smaller tax base". This is UNSUSTAINABLE...

  9. TGregg


    Wait'll Michigan gets the data from their skyrocketing costs and tax revenues dropping off a cliff. They love taxing their way to prosperity.
  10. clacy


    Yes, if I had my way, only net income tax payers would have the right to vote. It's very frustrating to think that a wellfare recipient who has never left their couch, has a vote that is EQUAL to mine or yours. :mad:

    Very depressing....
    #10     Apr 9, 2009