Tuesday, April 21, 2015

States With Budget Deficits Will Raise Taxes As Economy Contracts

State budgets, a byproduct of mismanagement, unrealistic expectations and promises, and the general belief that the business cycle can be managed despite clear lessons from history, have been in deficit from California to New York since 2007. Lawmakers, desperate for cash and always ready to prove their importance to an apathetic public, will raise taxes even as the economy shows clears signs of contraction by 2016. The suggestion that the public remains oblivious this as well as other risks is likely a huge understatement.

Headline: Lawmakers could consider gasoline tax hike

Wichita, Kan. --- The state budget deficit is driving lawmakers to consider numerous sources to generate tax revenues.

One of those expected to be on the table when lawmakers return next week from their Spring break is the gasoline tax. State Republican Party Chairman Kelley Arnold speaking on KAKE's 'This Week in Kansas' several possible tax increases are being considered, including a higher gasoline tax. "They could look at increasing that from a nickel to a dime," Arnold said. "About a nickel will generate you about $100 million in revenue."



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