Harkness opens his piece by quoting President Obama urging us to "set aside childish things". Like expecting something for nothing.(bold in all quotes mine)
Pulling out of the economic muck isn't the only benefit that can stem from rethinking the tax question. States in particular need to modernize their tax structures so they can be assured of adequate revenues down the road. Many states are in structural deficit, even in relatively good times. Their tax codes were written decades ago, when manufacturing, rather than services, was the country's primary economic engine. Not only are many states depending on revenue from industries that no longer generate as much revenue as they used to, but the tax codes themselves are becoming a drag on economic growth.
Later in the article, Harkness, using California as an example, says cutting spending only goes so far
In a revealing analysis of the California budget crisis, the San Jose Mercury News noted recently that if the state, which is facing a combined two-year deficit of $42 billion, were to lay off every one of its 230,000 employees, it wouldn't solve even half the problem. So it's hard to see how the state can cut its way out of this mess. But since a two-thirds vote of the legislature is required to pass a tax increase in California, it's easy for the anti-taxers to block a solution that includes realistic revenue reform.
We are at a crossroads in New Hampshire, and have been stuck there for a very long time. Say, fifteen years or so. About a year ago, I had an idea that all constituencies in the state should come together and have an open discussion about this issue. My original thought was to focus on education funding, but it probably should be broader than that. There is a method for facilitating such discussions known as Future Search. Someone told me that the town of Harrisville successfully used this facilitation method with respect to planning. Anyone with experience please comment.
The bottom line is, we can't have public services without paying for them. It's funny how I heard no real outrage when gasoline prices were about $4.00 a gallon. (Big oil companies are the only ones in the black these days.)Health insurance premiums have skyrocketed out of control. One year, my family's premium went up 55%. If taxes went up like that, people would be headed to the barricades. One could argue that it is a "choice" to carry health insurance. But is it?
It is my hope that we can have a dialog and work through what services we want the state to pay for and how that should be done. First, we have to cure ourselves of "taxophobia". A phobia is an irrational fear. And there is a fear--a fear of even discussing the problem. A fear of the so-called "third rail" of New Hampshire politics. This phobia, like all phobias, is destructive. If it is not cured, there will surely be worse diseases of the body politic.
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