Florida Budget Deficit Sharpens Debate On Taxes

[tufsu1]

This applies to the state...but nationally as well...

http://www2.tbo.com/content/2008/sep/22/me-states-budget-deficit-sharpens-tax-debate/news-metro/

"Tax increases would not in general be more harmful to the economy than spending reductions," Nobel Prize-winning economist Joseph Stiglitz argued in 2001 during the post-9/11 economic downturn.

A professor at Columbia University, Stiglitz said in an interview last week that his 2001 analysis holds equally true for states today - and where individual states go, so goes the country, affecting all taxpayers. "Congress enacted a $150 billion stimulus package. That will all be undone if the states contract their spending," he said.

State spending flows directly into a state's economy, Stiglitz reasoned, supporting jobs and local businesses. Wealthy taxpayers, on the other hand, tend to save more of their incomes than other people do, bringing the economist to his next point.

"If you increase taxes on upper-income individuals, it has the least effect on consumption," he said. "Poor people consume every dollar they get, unlike rich people who don't."

[fatcat]

hmm, i totally dislike the tone of the article. i might have to get my lazy butt off the couch and mail some letters. One thing about tax: i will be OK if they raise sales tax alone. But as much as i object, i can smell an other property tax increase in the air!

compare to property tax, sales tax is easier to collect, independent from personal view of individual property appraiser. IMHO, sales tax is fairer than property tax.