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Tuesday, February 07, 2006

Spend more now, raises taxes later

The Cato Institute's Chris Edwards reports that many states (like maybe Pennsylvania) are following the same mistakes of the late 90s in Busting the State Tax-Revenue Boom.

When state tax-revenue jumped in the late 90s, states responsed by bloating spending (except Colorado under TABOR). When the 2001 recession hit states had to raise taxes to pay for all their new programs. Now that states are again experiencing an economic boom resulting in surpluses,what do you think they are doing?

Cutting taxes? How naive of you.
Putting money into a rainy day fund? Laughable
Increasing spending and new programs? You're finally catching on.

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