Mission impossible
State legislatures are faced with huge budget deficits that will have to be dealt with. Because of the massive federal cuts in state aid, states have had to cut state services. If voters have not already discovered this, there is also the reverberating negative effect that cuts in state aid have on municipalities or local governments. Given the GOP's sole focus on spending cuts and total opposition to any tax increases, its 'scorched earth' spending-cut policies will cause irreparable damage to vital state services, which state residents have come to expect and demand.
Already local governments are faced with the prospect of raising taxes merely to keep functioning. The end result will be continued increases in taxes, whether federal, state or local or a combination of all three. The task before state legislators is going to be extremely difficult, if not impossible, if taxes are not raised.
I would add that an increase in sales taxes is not the answer; it is one of the most regressive taxes, affecting primarily those in the lower to mid-range income brackets the most. It's income taxes that must be raised.
I'd also suggest four things that would go a long way toward reducing our deficits: the federal government should increase the marginal tax rate for those with multi-million-dollar incomes, increase the tax rate on unearned income from 15 percent to 25 percent, retain the Estate Tax on those with multi-million-dollar inheritances and scrutinize wasteful spending in the Defense Department budget.
Over the past few decades, the wealthiest of Americans have already had substantial tax cuts. It's time they pay their fair share.
Paul G. Jaehnert
Reader
