4 ms·

State governments are totally MIA here. There’s not even a hint they’ll defer state or local taxes, let alone forgive. In fact in some states they’re proposing

State governments are totally MIA here. There’s not even a hint they’ll defer state or local taxes, let alone forgive. In fact in some states they’re proposing the highest income tax hikes in their history.

skuhn 6y ago
Many states are facing insolvency, because expected revenue has declined by as much as 30% [1]. States have "rainy day funds" to cover unforeseen events, but most have between 5-10% of general fund expenditures set aside [2]. States cannot create new money and they cannot declare bankruptcy. Most states also have balanced budget requirements [3]. If you want government support, the federal government is the only entity uniformly capable of creating money and running deficits. [1] https://www.ncsl.org/Portals/1/Documents/fiscal/Rev-Projection-Page-Data-Visualizations-7.7.20.pdf https://www.ncsl.org/Portals/1/Documents/fiscal/Rev-Projecti... [2] https://taxfoundation.org/2020-state-rainy-day-funds/ https://taxfoundation.org/2020-state-rainy-day-funds/ [3] https://www.taxpolicycenter.org/briefing-book/what-are-state-balanced-budget-requirements-and-how-do-they-work https://www.taxpolicycenter.org/briefing-book/what-are-state...
MisterBastahrd 6y ago
Many state governments aren't constitutionally allowed to borrow money or run a deficit. The people who supported these features are largely the ones who will be impacted by the results.
- fortran77 6y ago
  They can cut programs.
  - MisterBastahrd 6y ago
    The first thing that should be cut are special tax agreements with large businesses, not supportive programs.
fortran77 6y ago
I completely understand a tax hike. But California is only proposing it on "millionaires". I say, lets raise everyone's taxes 1% to take care of this special situation. It seems immoral to vote to raise taxes on "someone else." We're all in this together.
- rrrrrrrrrrrryan 6y ago
  The highest-earners pay a lower effective tax rate than the median earner. Most humans agree that progressive taxation is moral and just, but today "raising taxes on the wealthy" merely means "raising taxes on the wealthy to match the average person".
  - fortran77 6y ago
    That's simply not true, especially in California because of the elimination of SALT deductions. High salaried earners pay a disproportionate amount of taxes in the Unites States -- more than the percentage of money that they earn. While I'm sure there are a few wealthy people that have odd business arrangements that allow them to legally beat taxes, that's not the case for the overwhelming majority of people. I just like fairness. I think they should raise taxes to pay for the COVID bailouts. But on EVERYONE. Not just on someone else. On me and on you. Because I'm not a spiteful jealous person. https://taxfoundation.org/summary-latest-federal-income-tax-data-2018-update/ https://taxfoundation.org/summary-latest-federal-income-tax-...

skuhn 6y ago

Many states are facing insolvency, because expected revenue has declined by as much as 30% [1]. States have "rainy day funds" to cover unforeseen events, but most have between 5-10% of general fund expenditures set aside [2]. States cannot create new money and they cannot declare bankruptcy. Most states also have balanced budget requirements [3]. If you want government support, the federal government is the only entity uniformly capable of creating money and running deficits. [1] https://www.ncsl.org/Portals/1/Documents/fiscal/Rev-Projection-Page-Data-Visualizations-7.7.20.pdf https://www.ncsl.org/Portals/1/Documents/fiscal/Rev-Projecti... [2] https://taxfoundation.org/2020-state-rainy-day-funds/ https://taxfoundation.org/2020-state-rainy-day-funds/ [3] https://www.taxpolicycenter.org/briefing-book/what-are-state-balanced-budget-requirements-and-how-do-they-work https://www.taxpolicycenter.org/briefing-book/what-are-state...

MisterBastahrd 6y ago

Many state governments aren't constitutionally allowed to borrow money or run a deficit. The people who supported these features are largely the ones who will be impacted by the results.

fortran77 6y ago
They can cut programs.
- MisterBastahrd 6y ago
  The first thing that should be cut are special tax agreements with large businesses, not supportive programs.

fortran77 6y ago

I completely understand a tax hike. But California is only proposing it on "millionaires". I say, lets raise everyone's taxes 1% to take care of this special situation. It seems immoral to vote to raise taxes on "someone else." We're all in this together.

rrrrrrrrrrrryan 6y ago
The highest-earners pay a lower effective tax rate than the median earner. Most humans agree that progressive taxation is moral and just, but today "raising taxes on the wealthy" merely means "raising taxes on the wealthy to match the average person".
- fortran77 6y ago
  That's simply not true, especially in California because of the elimination of SALT deductions. High salaried earners pay a disproportionate amount of taxes in the Unites States -- more than the percentage of money that they earn. While I'm sure there are a few wealthy people that have odd business arrangements that allow them to legally beat taxes, that's not the case for the overwhelming majority of people. I just like fairness. I think they should raise taxes to pay for the COVID bailouts. But on EVERYONE. Not just on someone else. On me and on you. Because I'm not a spiteful jealous person. https://taxfoundation.org/summary-latest-federal-income-tax-data-2018-update/ https://taxfoundation.org/summary-latest-federal-income-tax-...