"The weak economy contributes only a small fraction to the deficit"---
Eh? Then why are so many states that DIDN'T cut taxes having trouble? Your turn to prove your statement.
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It was from a WSJ article. States have lost income with the downturn plus they've lost federal money for various programs plus they've had added security costs. I guess every state is different.
Message 19796898
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laura_bush wasn't vulgar on this thread, I don't know about the rest of the site.
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suite101.com
"Taxes have been increased for every war the United States has fought, with the exception of the war against Mexico in the 1840s. Ever since most of the original 13 colonies increased property taxes to raise money to fight the British in the American Revolution, war has generally meant taxpayers pay more."
216.239.53.104
"Another unique aspect of the financing of the Gulf War was the financialc ontributions that the U.S. received from its allies. In effect, foreign governments financed a large part of the war effort for the United States – contributions from foreign governments equaled $48 billion, while the overall cost of the war was $61 billion in current dollars. In the balance of payments, these contributions represented a unilateral transfer to the United States, which is recorded as a reduction in the current account deficit. The exchange value of the dollar was unlikely to have been significantly affected, however, since a substantial portion of the contributions came from Saudi Arabia and Kuwait, both of whom have a de facto fixed exchange rate with the dollar.
...When wars get larger, tax increases almost inevitably become necessary. Big conflicts typically bring economic booms since borrowing from the public and money creation expand aggregate demand...
The increased government outlays associated with wars can be financed in four ways: through higher taxes, reductions in other government spending, government borrowing from the public (the issuance and sale of U.S. Treasury securities to thepublic), or money creation." |
