So what is the traditional response to out of control gov't spending and decrease in revenue due to a recession?
Why raise taxes and fees of course.
"But we'll increase deductions for the poor and middle class", they whine. "It will only effect businesses and the wealthy."
And what will those wealthy people who own those businesses do? Why raise their prices and/or cut back on hiring/services. Then there's also the fact that all those 'fees' and 'service' taxes disproportionately effect the 'poor and middle class' since we still have to get vehicle stickers, buy gas, etc. Can we say 'regressive tax' boys and girls?
Now the 50% increase mentioned in the above article did just fail in the Il house 42-70. What is currently up, and has already passed the Senate, is a 67% income tax increase from 3% to 5% plus numerous 'services'.
Yep. Genererate revenue by impoverishing the residents of the state even further while driving out business and voting yourselves pay increases each year. And these people keep getting elected.
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This is what's happened in California over the last few years. Increase taxes and regulations, driving business and people away. We now have one of the highest sales and income tax rates, and income generators are leaving, with the welfare rolls growing, putting more and more of a strain on the already stretched system.
You would think the folks in power had absolutely no understanding of economics.
Oh wait...
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