The news is full of stories about the budget problems faced by the federal and state governments. But unlike the federal government which has ways to pay its bills without raising taxes, state governments have to balance their books the old fashioned way, by either reducing expenses or raising revenue or both.
But thanks to the anti-tax sentiment unleashed in 1978 by California’s passage of Proposition 13, we are now witnessing the fruits of the relentless propaganda over the past three decades that said that taxes are intrinsically evil and that lower taxes are always better.
When times are good and tax revenues are high, people demand that taxes be cut because it is ‘their’ money. When things turn sour, as they now have, people argue that to raise taxes would be to deepen the recession and that taxes should be cut even more to ‘stimulate the economy’, a phrase I have come to detest since it usually precedes some scam to siphon off wealth even more to the rich and to destroy the common good. So we have reached the stage when it has become an act of faith that it is always good to lower taxes and it is never good to raise them.
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