NYT: States Must Raise Taxes To Balance Budgets
Despite 9.6 percent unemployment nationally, with some areas of the country suffering far worse than that, the New York Times editorial board believes state governments must raise taxes to balance their budgets:
There is no way that these newly elected Republican lawmakers and governors can follow through on their promises to erase huge deficits without raising taxes — except by making irresponsibly draconian cuts in critical state services, particularly for the poor and for education.
The states, like the federal government, need to get control of spending. That may mean dealing with out-of-control pensions. It may mean careful cuts in services combined with, yes, higher taxes. But with millions of people out of work, this is the worst possible time for the states to try to solve all their problems by simply slashing health care spending, spending on higher and elementary education, and services for the elderly and the poor. It would lead to tens of thousands of layoffs and even lower state revenues.
Irresponsibly draconian cuts in critical state services. How about the irresponsible hikes in state services that got us all into this problem in the first place?
While the Times is nobly concerned with the millions of people out of work, why doesn't it care about the millions more that will be unemployed if taxes are raised further? Or how the exodus of businesses and residents from such states will impact tax receipts thereby worsening fiscal matters?
For some reason as America's liberal press watch nations throughout Europe conclude that their respective experiments into socialism have failed miserably thereby necessitating draconian cuts in critical state services before government debt is defaulted on, the geniuses in press rooms on this side of the Pond see the solution as more socialism:
No matter what the politicians have promised, there is no sound way to balance budgets, protect the most vulnerable people, and the states’ own economies, without some tax increases.
It seems the Times isn't going to understand the gravity of the situation until people are rioting in New York City right next to the Gray Lady's headquarters.
The way things are going, that doesn't seem too far off.