How can a state on the verge of bankruptcy raise taxes?

Question

1.Businesses have already started leaving or folding. Don't you think to stimulate an economy we should cut taxes and make a state "business friendly?" People are, losing their homes and jobs, so who will bear this burden?

2.Wouldn't we employ more people if we can keep businesses in our state?

3. Wouldn't cutting even more taxes in our country stimulate even more growth and employment so that we would not have to rely on the government for health care?

4. What about privatization of services?

Yup, Wild man, you guessed it, and we are going down in flames!

Lisa: Michigan wants to tax services, LaSalle Bank and Comerica left. Small business services will really feel it. So more jobs lost!

Answer 1

If it's here in Massachusetts, the answer is with ease.

1. Democrats aren't concerned about reality, they'll burn that bridge when they come to it.

2. Yes, but stop thinking logically and realistically, if you are that way you must be a mean spirited Republican.

3. Democrats don't care about growing the economy, only growing the government. We will ram public health care down your throat whether it is good for you or not because it IS good for big government

4. In the liberal world, the only thing private will be the three types of restrooms, men, women, and transgendered.

Answer 2

Totally agree.

Taxes take money from the productive workers to support the rest that produce nothing.
People that can produce don't want to support others. They're entitled to enjoy the fruits of their labor. As a consequence, they move to places where such fruit is not taking from them at gun point.
Services can be run privately or publicly. The later has proved to be a bad idea in most cases but I wouldn't rule it out. The government should go back to its original purpose, the administration of the public thing, the res publica, the republic. And charge for that service with an open option to buy the same service from the private market. Each jurisdiction should be able to draw the line wherever is more convenient. Old cities and towns would find a lot better to keep street lights, sewer and others in public hands and newer or smaller cities may find that the private market can do better.
With the money and the power away from the government, the market will take over. Less taxes, more business. More business, more jobs. More jobs, more money. More money, better life.

If that's make sense to you, welcome to Libertarianism. Remember this next time you vote. There's a Libertarian candidate available for you and he's talking about what you already know but don't know you know.

Answer 3

Great question. You need to head over to Hillary's site and post this!

This is a catch 22 and apparently the state itself can't see the harm it's creating by raising taxes, not privatizing, and apparently the inability to see that this is no way to stimulate growth.

If anything, they should be doing exactly what you point out, and not driving businesses and individuals away by creating more of a tax burden for those who pay the taxes.

Answer 4

1. They are offering HUGE tax breaks to businesses.
2. Yes
3. No, and the government has very little control over the employment here (in MI). The UAW needs a reality check.
4. People who have money do not donate enough to cover the people who would lose if services were privatized.

Edit: I should have said tax breaks to new businesses. I disagree with small businesses feeling it. It will not deter spending. It's not a large enough percentage change to make people think twice about thier purchases.

Answer 5

I couldn't agree more. I live in Michigan, and this once thriving state is being bled-dry. The auto industry, once the envy of the world and the "Arsenal of Democracy" is crumbling. The rest of the state is tied to them, and we're all going down. We need a Governor that realizes that raising taxes is the LAST thing she needs to do at this time. She needs to do what she can to cut government spending, then bend over backwards to get companies to locate here.

Answer 6

You sound like your in Michigan, with a democrat Governor I might add.

The answer to your question is yes, they should cut taxes, cut spending, and provide tax breaks to business to stimulate growth and keep jobs. If you are in Michigan I can point out that the cigarette Tax that Granholm instituted (7.00) a carton, has actually lost revenue. Smokers started buying cigarettes over the Internet and from out of state. So they sold even less collecting less revenue. The increase in tax was suppose to increase revenue to apply to health care. She increased spending assuming they would get an increase, and revenue actually decreased, putting the budget further in debt.

Answer 7

Illinois does the same.
Your assessment of the situation makes sense to conservative thinkers.
Marxist/Socialist types don't care. The State is EVERYTHING! People don't count.
The more people they have on the dole the closer they are to their idea of utopia.
Yes. It really IS that simple. That IS how a tyrant thinks. Money is power and a high tax rate takes power from you and gives it to them to abuse in any way they wish.
P.S. There probably IS a LOWER LIMIT on how little we can charge in taxes, but I don't know of any state or nation that has achieved that limit yet.
We MUST be more frugal in HOW we spend the money.

Answer 8

The problem is that Government do not think of cutting expenses. They do not ask the department head to cut 5%. Instead government makes excuses to increase their expenses.

This makes bad decision to build a business in a state.

Answer 9

I was also going to guess Michigan. This country is bleeding jobs that have gone to the third world for cheap labor and no standards.

Good paying jobs are the answer to all of those problems.

Answer 10

I know the tactic of raising taxes seems to make no sense, but like I tell the kids, "there is nothing common about having sense"