States broke? Maybe they cut taxes too much

Source: McClatchy

States broke? Maybe they cut taxes too much

By Tony Pugh | McClatchy Newspapers



WASHINGTON — In his new budget proposal, Ohio Republican Gov. John Kasich calls for extending a generous 21 percent cut in state income taxes. The measure was originally part of a sweeping 2005 tax overhaul that abolished the state corporate income tax and phased out a business property tax.

The tax cuts were supposed to stimulate Ohio's economy and create jobs. But that never happened once the economy tanked. Instead, the changes ended up costing Ohio more than $2 billion a year in lost tax revenue; money that would go a long way toward closing the state's $8 billion budget gap for fiscal year 2012.

"At least half of our current budget problem is a direct result of the tax changes we made in 2005. A lot of people don't want to hear that, but that's the reality. Much of our pain is self-inflicted," said Zach Schiller, research director at Policy Matters Ohio, a liberal government-research group in Cleveland.

Schiller's lament is by no means unique. Across the country, taxpayers jarred by cuts to government jobs and services are reassessing the risks and costs of a variety of tax reductions, exemptions and credits, and the ideology that drives them. States cut taxes in hopes of spurring economic growth, but in state after state, it hasn't worked.

Read more: http://www.mcclatchydc.com/2011/03/28/111161/states-broke-maybe-they-cut-taxes.html

And all on the backs of the state tax payers.

The more you cut taxes, the more money you have! So obviously this report is all lies! Filthy lies!

Cut cut cut cut cut and then bail just before the shit really hits the fan. A Dem will get elected and the voters will blame the mess on him/her.

Worked pretty good at the federal level. The liberal media will allow them to blame Obama and won't lift a finger to correct them. No reason it shouldn't work equally well in state government as well.

this applies to ALL the US states, as well, and many cities, districts, too

http://realitybloger.wordpress.com/2011/03/01/wisconsins-real-financial-situation-explained

"The following is a list of totals reported in the Wisconsin State Comprehensive Annual Financial Report (CAFR), fiscal year ending June 30, 2010.
The individual funds and investments that make up these totals are listed in detail below these fund “totals”.
All of this is sourced from the state’s 2010 CAFR, which can be downloaded at the state governments website, here: http://www.doa.state.wi.us/subcategory.asp?linksubcatid=374&locid=3

It may also be viewed online here: http://www.docstoc.com/docs/23131666/Wisconsin-Comprehensive-Annual-Financial-Report



...........But to put this state government wealth into perspective… The population of the state of Wisconsin as of 2010 was 5,686,986 people. The above figure of over $123 Billion represents investments and capital net assets, which total $21,712 per person in the state of Wisconsin. Remember… many of those people are kids with no income!

This summary compilation of the wealth of the state of Wisconsin is for one purpose: to show exactly what the Wisconsin state government is holding in cash and liquid investments, and not hiding this wealth by stating what their “future obligations” are. So the above figure is what the state had in actual assets, cash, and investments as of June 30, 2010, after liabilities were already paid, and not what it will spend later (which is just their way to hide this current wealth as reported by attaching its value to future financial obligations). Compare this with your exact personal bank account balance today, not what it will be next week or in 5 years (or once future bills are paid with future checks). This is the balance today, and it includes your savings and investments at their value today, not in the future.

While the State government will tell us that these funds are designated or “restricted” to the funds that house them, there is no law that says this is the case, and they are transferred between each fund (intra-fund) all of the time. Do not let these crooks tell you that these funds and investments are restricted without proof. SHOW US THE LAW!

This is rightly taxpayer money, and it could and should be used for taxpayer purposes. Instead, it is being withheld from the public (taxpayers), invested in these funds, and used for “business activities” within this for-profit corporation known as the “State of Wisconsin”. There is no reason that any government (meaning the people; the public) should be in debt, at all, with this kind of hidden wealth.

The state of Wisconsin is obviously far from bankrupt........"


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very detailed article

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VIDEO

comprehensive annual financial reports expose a huge governmental bookeeping scam of trillions of dollars (through double books)

http://video.google.com/videoplay?docid=6703413885850200097#

That fixes everything...just ask any Republican....

......oh, yeah, NO JOBS HAVE RESULTED!

I know, I know......Ohioans need to be patient.....they need to let these tax cuts fully take hold...THEN.. THEN the jobs are gonna pour in like a tsunami!!!! you wait and see.....just give it a few years......oh, yeah......it's been 6 years already hasn't it.....uh, well, uh.........


Ok, I got nothing.......... but then that means that all this tax cut creating jobs is nothing but BULL SHIT and that can't be true......rethugs and teabaggers wouldn't LIE TO US....say it isn't so!!!!!!!!!

We don't have a spending problem. We have a revenue problem.

it never made any sense but now it is clearly not meant to sustain the operation...... which they hope to "starve"

I've already quoted it in several on line battles with wingnuts. You rock!

I'm sorry, they did EXACTLY what they were targeted to do... destroyed the state government.

in the same way that bombing every country in the Middle East will lead to power and
the best way to remain competitive is to let infrastructure crumble and
consolidating wealth into the hands of a few is a great idea and
the "War on Drugs" isn't a huge waste of money and
deregulating financial industries is a great idea and...

IT HASN'T WORKED."

"States cut taxes in hopes of spurring economic growth, but in state after state, it hasn't worked."

It what?

IT HASN'T WORKED.

Let's hope TO GOD that taxpayers are indeed reassessing those allegedly fabulous magic-cure-all tax cuts "and the ideology that drives them".

or else cut services.

Why is it that politicians and most of the public develop convenient amnesia when discussing tax cuts? :shrug: