Tuesday, January 29, 2008

States get "creative" to raise revenue

The AP (1/29, Gormley) reports that states are resorting to "innovative -- and sometimes odd -- ways" of generating funds "in these increasingly gloomy economic times."


Because of the looming recession, many states suddenly found themselves facing budget deficits again. In response, they could "[l]ease a toll highway, like Indiana and Virginia did, or cash in on future lottery profits as a half-dozen states are considering." Also worth considering: "slap a tax on pornography as six states already have," "tax strips joints like they do in Texas," or collect amusement tax or "jock tax" for live performances and professional athletic events.


These seemly-amusing revenue-generating ideas are popular for politicians, who love to use such methods because "they don't have to raise income [or sales] taxes." However, "critics say that's also the danger, if long-term problems never get fixed and essentials such as health care and education go wanting."

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