Connect the dots!

The costs of Bush’s $1.3 trillion tax cut [for the rich] and a $3 trillion war [see http://www.washingtonpost.com/wp-dyn/content/article/2008/03/07/AR2008030702846.html drastically reduced discretionary federal funding to states and municipalities. Now states are having to scrimp and save in order to balance their budgets. “Scrimp and save” is code for under-funding essential human services. That $4.3 trillion “shortfall” is the equivalent of about $14,300 for every man woman and child in the U.S. Here in the state where I live, with a population of 6,500,000 our share of that works out to over $93 billion!

The state legislature here just raised taxes on cigarettes, soda, and bottled water in order to help fund the state budget. Those taxes fall most heavily on working class people. (I wonder why the legislature didn’t raise taxes on limousines, yachts, diamonds, and 5000 + square foot houses…hmmm.)

While I agree with the point Richard is making here (which is: to make up for the reduced discretionary funding states have to raise taxes on things which tend to disproportionately affect the working class) I don't have one small bone to pick. I don't know what state you are from, but I live in Texas. The reason why in Texas the state legislature raises sales taxes and doesn't raise taxes on things like "limousines, yachts, diamonds, and 5000 + square foot houses" is because the state does not collect a property or an income tax. Municipalities earn money through property taxes--not the state government. That's why when buying a house in Texas you want to research what city your house will be in, because that will determine how much you pay for that house. I'm not sure if "diamonds" fall under property taxes though, but I think you seemed a little facetious in your suggestion of taxing those. I do agree with you though, in cutting discretionary spending to states, the federal government is forcing states to find new ways to gain revenue. Seeing as how most states only have a sales tax, this forces them to raise taxes which adversely affects the middle and lower classes. I also want to add that in Texas the governor has no say in formulating the budget, maybe this would explain GWB's ineptitude in this regard. Again, I don't know what state you're from, so if you happen to be from a state which can and does collect a property/income tax, then I'm sorry I wasted your time.