States and Towns Lean on Taxpayers
As posted in the Wall Street Journal, 09/26/09
http://online.wsj.com/article/SB125392874638642923.html
Several states appear to be climbing on the bandwagon in search of ways to increase their revenue in the unstable economy. Many states have begun to impose fees on certain products sold (discretely labeling them as “fees” in lieu of “taxes”.) Additionally, several states are attempting to retrieve back taxes from many businesses. (Please see article, link attached.)
It is my opinion that back taxes, due and owing, should be paid by businesses or private citizens alike however, new “fees” levied against businesses for the sole attempt of increasing state & town revenue should be deemed unlawful.
Additionally, what the state/town government officials who impose these fees are not considering, is the ultimate impact on the local businesses and consumers alike. If too many business are forced to close their doors due to extra taxes (however disguised), it hurts the local economy more than it helps, as well as the national economy, trickling down to the individual consumer and business owner. Either business owners cannot afford to retain their businesses or they pass their losses on to consumers in the form of higher prices, of which the consumers cannot afford. It appears to be a lose, lose situation either way I look at it.
Ultimately, if too many businesses close their doors, there will be no revenue for the state/town government to receive in any form.
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Although the states and local governments probably do need money, perhaps tightening their belts would be the most appropriate action instead of legislating new taxes. The theory of "supply side economics" states that high taxes discourage hard work, thus decreasing revenue and taxable revenue from businesses and the public. Reversing that theory, lower taxes stimulate economic wellness, and eventually even increase the amount of taxes collected. Ronald Reagan applied this theory when he was President. I believe that current law makers would be smarter to leave taxes alone or reduce them.
ReplyDeleteThat's interesting. I did a project using "Sim City" where we had to create our own cities and watch it thrive. From building houses to managing the taxes. I also found that decreasing the sales tax did stimulate the economic wellness by drawing in more citizens. The state and local governments could reduce cost by lowering salaries. Some of their salaries are dramaticly over stated. They also should try reducing cost such as "flying" when driving is a reasonable option. It seems to me that they would much rather take from the "poor" and give to the wealthy. A disgrace. I sometimes wonder who is in charge of the budgets.
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