Tuesday, May 9, 2017

State and Local Governments Will Raise Taxes As Global Economy Contracts

Local property tax freezes are 'no good' because local governments have no idea how to live within their means. State and local governments cannot print money, so unless there's severe reductions in their size and scope, costing thousands of public sector jobs, they will raise taxes to defend their influence as the global economy contracts. This is deflationary and could turn the next recession into a depression unless there's a massive tax cut at the federal level. Smart money, however, says big deal! Taxes will only rise once the opposing party takes office during the next cycle. The permanent ebb and flow of rising and falling taxes makes long-term planning impossible for American corporations. Corporations focused on long-term stability leave, taking their jobs with them. Investment, jobs, and corporations will return if we legislate some long-term stability. It's that simple.

Headline: Why a property tax freeze is a no good, very bad idea for Illinois towns

This spring, Illinois lawmakers are considering proposals to permanently freeze property taxes throughout the state. Not surprisingly, the idea is gaining steam among both Republicans and Democrats.

You may be asking yourself: Why wouldn't all local mayors support a permanent property tax freeze as well?



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