posted on Nov, 9 2004 @ 09:08 PM
I live in a state with a conservative governor that made an expensive run at an enormous tax increase within weeks of taking office.
Two years back Alabama and Nevada made hard runs at raising state taxes. Both had conservative political control. In both states the measures went
down in ignominious defeat. The threatened cuts in programs didn't happen.
the federal government under conservative leadership is determined to lower taxes, therefore states will have to raise their own to maintain
programs or cut programs to stay solvent
The feds operate in a deficit as a matter of course, yet deficit spending hurts states terribly in the money markets so states tend to operate without
deficit spending. To make up differences state use bond issues, resource depletion increases and gambling/lottery earnings if tax increases can't be
With that as a back drop I have wondered why.
Here's my conclusion (two years after the fact):
tax (and depletion) incentives will be used by favored states to pull businesses from non-favored states
This will cause an enormous shift in population.