Recession pounds states' budgets
Not that this is news to anyone, but here is a round up of the situation in the states.
See also the details offered here:
How does Wisconsin compare?
Do any common trends emerge across states? If so what? If not, why are states adopting different approaches?
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It seems that one emerging trend is that most states are having to raise taxes in order to settle the budget. Doyle is not alone in this process, as only a few states were cutting taxes (N. Dakota, Montana, Wyoming). This is an easy way to balance the budget, but the implications this has on the economy are another story. Is it better to run with a deficit and to have people keep more money, or to run without a deficit and to tax heavily? This is not an easy question to answer and one that I have trouble with myself. Many constituents in my office's district are not happy with tax increases...
ReplyDelete- Luke D
Luke brings up a valid point, and one that should be evaluated even further. It is not simply a question of more or less taxation, but where the taxes are being levied. Should we be increasing taxes on the rich? on gasoline? on corporate profits? and on the other side of the coin, where should the tax breaks be given? Which of these plans is going to spur economic growth and which is going to stunt it? Will we ever see a perfect policy, if politicians are making decisions mainly off of past experience due to time constraints as Lindbloom mentions?
ReplyDeleteI couldnt agree more with Luke and Kurt. People would like ot know where the taxes are going. Going back to Kingdon, constituents have the tendency to persuade each other,and whther or not they are savvy in their surrounding local government has to be tested by votes. Here is the thing: people hate voting for whta tey are unclear on. Taxes equals money taken away. IN an economy like this, it is very important to let constituents know where their money will go.
ReplyDeleteAs Kurt mentioned, looking to the past for answers about the future can be very challenging and can pose great consequences if followed too closely. Research is what we have now to supplement the unknown. Having raised taxes in this current budget, may help in the long run, but it seems all to typical of politics, Dems run floor or not, that expenses trickled down here and there, adding up to a large amount of dollars.
If the people of the state had a solid gameplan as to what is going to happen, I am sure they may be more supportive.
Again, as both gentlemen mentioned above, this question of what is best, taxes or not? economy or not?, is a hard question to answer.
Is this the dawn of a new, rough politics?