Cut Spending or Raise Taxes?
The state government is facing a dilemma over whether to cut spending or raise taxes because of a constitutional requirement that the governor sign a balanced budget. It seems like a rather easy decision to cut spending, especially in the midst of an economic downturn, but others do not agree. A letter to the editor published in the St. Louis Post-Dispatch argues that Missouri’s budget problems would best be solved through higher taxes, saying that “the cuts have inflicted irreparable damage on the citizens.”
The faltering economy has certainly made it tough for Missouri, but raising taxes is the last thing we should do. Cutting the budget obviously hurts some state programs but it is a far better option than tax hikes. Higher taxes would lead to fewer productive jobs and less economic growth — this is not a remedy for a healthy recovery. Increased taxes would take more money out of the pockets of individuals and feed it to the wasteful beast that is government. At a time when Missouri’s families are tightening their belts, the Missouri government should follow suit. Missouri and its citizens would be better off if the government let the people of this state keep more of their own money, allowing them invest and grow Missouri’s economy.
Hat tip to John Combest for the link.