The Center on Budget and Policy Priorities recently published a couple of articles discussing how states are raising taxes to deal with their budget shortfalls. One of the articles reports that raising taxes is consistent with how states have responded during past recessions, and that raising taxes is sound policy.
The report also communicates that 16 states have enacted tax increases this year, and another 17 states are considering revenue-raising options. On the flip-side, 36 states have cut public services to reduce spending.
Click on the following links for access to the complete articles:
http://www.cbpp.org/cms/?fa=view&id=2816
http://www.cbpp.org/cms/?fa=view&id=2815
My Thoughts
As a taxpayer advocate and consultant, I can't say I agree with all of the writer's viewpoints. My first reaction would be that states, and the federal government, should cut spending when their revenue declines, just like you and me. On the other hand, if states choose to increase taxes, they need to ensure they follow proper procedures and enact taxes (and penalties like California) that are constitutional and fair. My major disagreement with the article is that I believe most Americans already feel they are taxed everywhere they look. Do we really need more taxes, fees and penalties?
I apologize for the 'soapbox,' I really didn't mean this post to go that way. But in any case, the activity among the state legislatures is hectic, which means, there is a great deal of change going on.
