Higher Taxes Wouldn’t End Some State Deficits
By MICHAEL POWELL
NYT
As state governments struggle with the fiscal damage caused by the recession, an income tax increase has become a rarely used remedy.
Governor after governor has publicly forsworn the prospect of raising income taxes, preferring to talk layoffs and cuts in programs and public union benefits. To cite prominent examples, Democrat Andrew M. Cuomo of New York and Republican Chris Christie of New Jersey have ruled out income tax increases.
Still, cracks have appeared in the no-tax-increase facade. In Illinois, Gov. Pat Quinn signed a law that temporarily raises the income tax rate to 5 percent, from 3 percent. New governors Mark Dayton of Minnesota and Jerry Brown of California have talked of enacting or extending tax increases.
Set aside for a moment the ever-charged argument about whether income tax increases spook the wealthy and consider this question: What would an increase in the personal income tax of a size similar to that of Illinois do for other fiscally troubled states? The New York Times examined this question in three embattled places, New York, California and New Jersey.
(More here.)
NYT
As state governments struggle with the fiscal damage caused by the recession, an income tax increase has become a rarely used remedy.
Governor after governor has publicly forsworn the prospect of raising income taxes, preferring to talk layoffs and cuts in programs and public union benefits. To cite prominent examples, Democrat Andrew M. Cuomo of New York and Republican Chris Christie of New Jersey have ruled out income tax increases.
Still, cracks have appeared in the no-tax-increase facade. In Illinois, Gov. Pat Quinn signed a law that temporarily raises the income tax rate to 5 percent, from 3 percent. New governors Mark Dayton of Minnesota and Jerry Brown of California have talked of enacting or extending tax increases.
Set aside for a moment the ever-charged argument about whether income tax increases spook the wealthy and consider this question: What would an increase in the personal income tax of a size similar to that of Illinois do for other fiscally troubled states? The New York Times examined this question in three embattled places, New York, California and New Jersey.
(More here.)
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