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joebear29
join:2003-07-20
Alabaster, AL
| Re: This is what massive Federal tax cuts will get you said by garagerock  :
Yes, in the laboratory that sounds great.
In the real world, people who need Medicare aren't going to tolerate any caps on that spending, especially when the older generation has a LOT of political clout (AARP, anyone?) and vote in large numbers. Health care issues alone are going to bankrupt the whole country if we're not careful...and wishing it all away isn't going to work.
So-raise taxes to continue benefits, or cut benefits? Both are political landmines for politicians.
So don't cap spending, and tax away.
What I objected to was blaming State budget deficits on Federal tax cuts. If anything, reduced Federal burdens on taxpayers gives the states more room to raise taxes. | |
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garagerock
Premium
join:2002-06-14
Louisville, KY
| Re: This is what massive Federal tax cuts will get you Ahhh, but therein lies the rub. Their expenses are always going to rise, and if federal revenues are down (as they are now), how can they raise income taxes without causing collateral political damage? Instead, they raise a knick-knack tax (cigarettes, booze, LAN's) to make up for the shortfall.
Far easier to do than raising income taxes. No state wants to be known as the state that rose income taxes so high it drove the population away (er, wait-isn't that California?) | |
| | lesopp
join:2001-06-27
Land O Lakes, FL
| Re: This is what massive Federal tax cuts will get you Florida voters amended the state constitution some years ago to bar the state from taxing income.
Florida used to get a good chunk of change from tourism revenues. Following 9-11 tourism fell and never completely recovered. Adding to that the tech bubble burst, jobs were lost and the economy went into a recession.
Finally, the voters in 2000 amended the state constitution to require the government build a high-speed rail system. In 2002 they again amended the state constitution to limit class sizes, along with some other dumb-ass amendments. The voters approved all these amendments without a thought as to how they would be funded. | |
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