State income tax hikes, of course.
The squeeze is especially severe in states hit hardest by the recession, such as Arizona, where sales-tax revenue has fallen by 10.5%, income-tax collections are down 15.7% this fiscal year, and the government faces a $3.4 billion budget gap next year. But such shortfalls are likely to be widespread; federal income-tax receipts from individuals have dropped more than 15% in the past six months, according to Congressional Budget Office estimates.
Brace yourselves. The lust for municipal spending is going to see no abatement, even while state and municipal pension funds are facing rather frightening unfunded obligations. One expects to see repeats of California’s recent “to the public” bond issuance- a trend that we see mirrored in the Administration’s hope that financial “Liberty Bonds” are the answer to toxic waste pits that pock the financial landscape at present.
Is debt the answer? It will have to be, because it really doesn’t look much like tax revenues are going to recover anytime soon (the Administration’s rosy economic projections notwithstanding). Does anyone else see some irony in the recursive folly of pitching to the public tax free bonds that will be funded by later tax hikes? Or is that just us?
What, exactly, is it going to take to slow down spending?
More States Look to Raise Taxes [The Wall Street Journal]
Its called the redistribution of wealth. Take from the successful working people and put their hard earned money into nonsensical social programs that drag the country down.
I’m moving to new zealand or costa rica.
You will not slow down spending.
@3 not with this shithead in office and ACORN running the congress.
Uhh, #4, you do realize we’re talking about states here, right?
The Big O giveth and The Terminator Taketh Away
even the prostitutes are trying to help Nevada with their budget issues by raising taxes…
http://moneyneversleepsblog.blogspot.com/2009/04/prostitutes-try-to-prop-up-limp-economy.html
If the government doesn’t spend who is going to?
We all now know, that the solution to the problem of to much debt is more debt.
Even the RV industry is saying that the was that conumers couldn’t get credit to buy a RV. As soon as they can, the RV industry will be surpassing thier previous highs.
I may start doing heroin. Apparently addiciton is no longer a problem. The real issue is not being able to get enough heroin. As long as i can stay supplied all is right with the world.
PLAN A – Sell the $800,000 1-BR for what its worth (?). Take proceeds back to where you came from, hopefully some place where people have maintained their sanity. Buy a farm with a water supply and, preferably, a cave. Buy some guns, corn seed, and barbed wire. Plant the corn and bury what cash you have left in the cave, string barbed wire. Play it by ear but use food water and ammo sparingly.
PLAN B – Join ACORN and run for office in the next cycle
Canary in the coal mine for greater US social programs.
HOPE + CHANGE = BANKRUPTCY
I am from Texas, what is a state income tax?
it’s been this way forever.
at least in new york.
each time we received a federal income tax cut, state and local taxes (including property taxes) increased by an almost equal amount.
new york is disgusting, says this lifelong nyc’er.
rush limbaugh gets audited by new york state and city 12 years in a row?
can you imagine the fucking uproar if, say, michael moore or one of those moveon.org freaks like george soros got a full blown audit all 8 years of the bush administration?
which state goes totally insolvent first and starts defaulting on general rev muni bonds?
nj, ca, mi or ny?
and how come no “red” states are on my list?
13
ca, mi, ny, nj in that order
people still use the nj turnpike, nj has that going for them