State and municipalities have to make up the shortfall
Reader comment on: NYT on Reagan's 100th
in response to reader comment: Poor, not broke
Submitted by ben (United States), Feb 7, 2011 08:24
States and municipalities that rely more heavily on sales and property taxes often have to raise taxes when the feds cut back on aid. This shift the tax burden. Although being in the lower half in terms of income doesn't by definition make one poor, I would guess there is some correlation there.
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The Future of Capitalism replies:
Well they don't "have to." They could reduce the gold-plated pension and health benefits that public employees get, or cut out some of the patronage jobs and perks like cars and drivers, or privatize some state assets. It's a choice, and certainly Reagan's choice wouldn't have been the tax increase.
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