Handling state budget crisis

By: Hugo Estrada
Published On: 2/19/2008 3:00:21 PM

I just saw one of the best issues from the Progressive State Dispatch on how to handle state budget crises.

http://www.progressivestates.o...

Some of the ideas are pretty thought provoking.

The topics covered by this issue:

*Have Wealthy Pay Fair Share, Cut Taxes for Working Families
*Cut Corporate Loopholes, Not Social Services
* Prune Economic Development Subsidies, Protect Social Investments

This is my favorite idea in the issue:

Circuit Breakers, Not Property Tax Caps:   With the housing market meltdowns, we are seeing more proposals for across-the-board caps on property tax rates-- a bad idea that delivers most of the tax benefits to wealthier property owners who least need the help.  Instead, a better approach are Property Tax Circuit Breakers, which limit property taxes to a percentage of a taxpayer's income, while fully taxing the property of wealthy homeowners.   A new study from Connecticut emphasizes why circuit breakers, along with other reforms, are far better than a tax rate cap proposed by the governor in that state.


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