My state (GA), like many states, is having a budget crisis. Our new govnuh has decided a tax hike is necessary. So anything I save on the federal taxes I might as well just mail to the state of Georgia. Are other states raising taxes as well? It seems that this may counteract any stimulus package that gets passed.
Thank Goodness for the Bush Tax Cut
- Thread starter LakAttack
- Start date
LOL - but i'm a little tired of being penalized for owning a home. . .
I guess we make up for it by having such low gasoline prices
I guess we make up for it by having such low gasoline prices
dullard
Elite Member
- May 21, 2001
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There was a big push in the 1990s to give more control to the states instead of the federal government. That meant more money is controlled by the states. Many programs were switched from being funded by the federal government, to having the federal government send the money to the states, and then the states pay for the programs.
When the budget crunch came, many of these programs had intense pressure to stop increases in funding on the federal level. But with inflation, and with population growth, the amount of money the programs cost has increased. Thus there is an imbalance which the states now must pay for themselves.
Unfortunately most states are too small to withstand considerable deficits. They cannot get the funding to survive so much debt. Thus they need to raise taxes in times of recession and can (if they choose) cut taxes in boom times. Thus you end up with your situation - the state hurting you when you most need the money.
If the control had been kept in the federal goverment, then the states would have been able to survive this without raising taxes, and the federal government would be able to handle the debt swings.
I'm not saying that state control is bad, but this is one of the unfortunate side effects that we must deal with to have more local control.
When the budget crunch came, many of these programs had intense pressure to stop increases in funding on the federal level. But with inflation, and with population growth, the amount of money the programs cost has increased. Thus there is an imbalance which the states now must pay for themselves.
Unfortunately most states are too small to withstand considerable deficits. They cannot get the funding to survive so much debt. Thus they need to raise taxes in times of recession and can (if they choose) cut taxes in boom times. Thus you end up with your situation - the state hurting you when you most need the money.
If the control had been kept in the federal goverment, then the states would have been able to survive this without raising taxes, and the federal government would be able to handle the debt swings.
I'm not saying that state control is bad, but this is one of the unfortunate side effects that we must deal with to have more local control.
Queasy
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- Aug 24, 2001
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Originally posted by: LakAttack
LOL - but i'm a little tired of being penalized for owning a home. . .
I guess we make up for it by having such low gasoline prices
Go have a kid
That's worth a $1000 tax credit! That should offset the reduction in the homestead exemption oh that sucks. I just moved from Mass. to NH and saved about $150 per paycheck in state taxes . Oh NH has no state tax.
. Oh NH has no state tax.
Nitemare
Lifer
- Feb 8, 2001
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Our sales tax went up a half a percent on December 1..now pay 7% sales tax(state, county and city)..
Heard on the radio this morning the state needs to pay out 450 mill in unemployment benefits and only has 230 mill in the reserves though
Of course if these people payed up there would be less of a budget crisis
Heard on the radio this morning the state needs to pay out 450 mill in unemployment benefits and only has 230 mill in the reserves though
Of course if these people payed up there would be less of a budget crisis
dullard
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Actually it was the republican Contract with America that was focussed heavilly on giving the money to the states, not the other way around. They had full control of the house and senate for most of his term and got many of these bills through. Of course Clinton didn't do anything to veto them...
Queasy
Moderator<br>Console Gaming
- Aug 24, 2001
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Originally posted by: Zombie
oh that sucks. I just moved from Mass. to NH and saved about $150 per paycheck in state taxes
Yeah, the states that have no state income tax:
Florida (everybody else is moving there and the tap water tastes funny)
Tennessee (well, its Tenn-a-freacking-see. Nuff said)
Texas (Only two things come out of Texas.)
New Hampshire (brrrrrrr)
Texas is probably the only state of the four that I would willingly move to and that would only be in the Southeastern tip along the Gulf of Mexico. The thing about states that have no income tax is that they will make it up with sales taxes, gas taxes, property taxes.
Cali seems to have survived without an increase.
Just remember, the state is who keeps those roads in good repair so you can get to where you want to go.
Just remember, the state is who keeps those roads in good repair so you can get to where you want to go.
Queasy
Moderator<br>Console Gaming
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I thought Grey (I was re-elected because the other guy was worse than me) Davis was cutting a bunch of services to make up for the deficit. I think he also proposed raises in property taxes (I can't remember where I read that but I think I remember reading that).
And especially don't be a teacher who drinks, smokes and owns a home in Georgia....you're really screwed then.Originally posted by: Queasy
Just don't smoke, drink, chew tobacco, or own a home in Georgia and you'll be fine
dullard
Elite Member
- May 21, 2001
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Florida lives off tourism. The tourists can come in and buy hundreds of dollars worth of products (hotels, amusement park tickets, souvineers). The only way states have to make money off of tourists is by hotel taxes and sales taxes. Thus Florida survives heavilly on tourists paying for the resident's needs. Unfortunately many states cannot do that.
Queasy
Moderator<br>Console Gaming
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Originally posted by: Fausto1
And especially don't be a teacher who drinks, smokes and owns a home in Georgia....you're really screwed then.Originally posted by: Queasy
Just don't smoke, drink, chew tobacco, or own a home in Georgia and you'll be fine
Heh...I don't understand what the teachers are complaining about. There were lots of people who didn't get raises last year and won't get raises this year. Heck, I didn't get a raise last year and then I got laid-of then I got a job paying slightly less than my old job! It should be expected in the current state of the economy. They should be happy they aren't in the private sector where they could get the hatchet at any moment!
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