LexisNexis Sites
November 23, 2009
Site Search:
Tax
6/3/2009 9:52:44 AM EST
Sean Craig
Needed Fundamental Reforms Off the Radar in State Tax Policy
Spending Cuts, Other Reforms Taking Back Seat to Tax Increases
Posted by Sean Craig
When we are young, our parents and educators teach us that sometimes you have to take your medicine to heal a problem. For example, we tell children to study and work hard so that they can accomplish more in their education and eventual career. When we go to the doctor, they often prescribe treatments for various diseases that seem worse than the current impacts of the disease, such as chemotherapy. However, our various state legislators seem to time and time again miss this lesson. As we have all witnessed with the economic problems all across our country over the past several months, the economic condition of our nation does not appear to be well. This could not be more aptly demonstrated than when you look at the fiscal conditions of state and local governments all across the USA. We are all accustomed to various states or regions experiencing tough times, but the breadth and severity of the problem this time is disturbing.

The only thing more disturbing would be the response, or lack thereof, from state governments. Before the Obama administration's huge state government bailout of early 2009, there were doomsday predictions of the dire cuts and consequences that were going to come at the state level. After the knowledge of the coming bailout funds, these same legislators forgot the tough choices that they were going to have to make, and now we have slipped back into the same old gridlock and partisanship that has become the norm. In Florida, the budget problems were severe and worsening on an almost daily basis, but the existence of the bailout funds enabled the state to "fix" its current budget by a massive cigarette tax increase. In Illinois, the state officials do not seem to be able to accomplish anything and a significant capital budget, which would actually produce good things for the state and its residents, is now being held hostage as the battle over tax increases drags on.

It is mind boggling and extremely disappointing that the breadth of ideas and leadership from our collective state government officials across the USA is to increase cigarette taxes or simply raise tax rates and to avoid true reform and change. Where is the old idea of taking our medicine to better improve our long term health? Why is it so taboo to consider spending cuts or other government reforms. President Obama was able to "force" the CEO of General Motors to resign because of a perceived inability to effectively lead, but where is our right as the citizens and taxpayers of this nation to force our elected officials to resign? While the bankruptcy of GM is something few likely thought they would ever see happen, the collective failures of our government officials makes the bad decisions at GM look like child's play.

Rate this article:
LowHigh

Create an account or login to post comments.

Product Spotlight!

NEW! FREE lexis.com training!! New Legal Research Packages added! All New Look!