What do you mean "considering"? In North Carolina we have already cut taxes for the top 10% and raised them on the bottom 90%. and the state budget shortfall is reaching new record highs.
It is a drop in REVENUE problem. You see the Republican Legislature and Governor promised us that tax revenue collection would go up when they cut taxes. That's not how it works.
If you look over the federal budget you will see that ordinary folks pay the bills. There simply aren't enough wealthy folks to pay all the fuel taxes or alcohol or tobacco taxes. Ordinary people pay most of the taxes and oddly enough hold most of the debts if you look at the Fed's reserve report, USA is worth over $81 trillion 3rd quarter report. One of the first things the repturd's did upon taking over was cut taxes by the tune of $400 billion, apparently they didn't know we have $18 trillion in debt. It's quite obvious they are intent on bankrupting America. I just hope we can survive the dembulbs and repturds that govern us.
Didn't tax revenues go up when Reagan cut taxes? Isn't it supposed to work that way if lower taxes stimulate economic growth?
It depends on what taxes you are cutting. There are these people called economists who have done extensive studies on the impacts of different types of tax increases and cuts on the economy. When most of these experts are telling you that your tax plan will not increase state tax revenue then maybe the state Republican party should stop claiming that your tax plan will increase state tax revenue by year 2014. Of course, we are having increasingly large revenue shortfalls every quarter since the implementation of the 2013 tea party tax plan in North Carolina. Generally when you decrease income taxes on the top 10% and increase the overall taxes on the bottom 90% (by raising sin taxes, eliminating tax credits for lower incomes & upping every other tax) -- then the tax revenue in your state will decrease as consumers spend less money & businesses slow. State tax cut costs ballooning http://www.wral.com/state-tax-cut-costs-ballooning/13841265/ Breaking down the 2013 tax package http://www.wral.com/breaking-down-the-2013-tax-package/12678653/ My primary issue with the state Republican clowns is that it was obvious to any reasonable person who can do basic math that their tax plan would cause a drop in state revenues. This is acceptable if you have a spending cut plan to go along with tax cuts. However the Republicans increased government spending - by funding their pet causes with government money (e.g. privatization of government functions to relatives of legislators which cost more money than the government performing the function) and having continual cost overruns in every agency (IT, etc.) while the government services remained substandard and were reduced.
Clinton raised taxes and revenue went up as did Barry and in both cases the economy kept chugging along, perhaps dembulbs and repturds don't have all the economic answers.