| numonex said:
I have no idea about economics. I do not know how the State government could balance the budgets. Spending cuts are needed but the right cuts need to be made, wage reductions/freezes for public service. Tax cuts across the board would increase the deficit, not reduce the deficit. |
Higher taxes don't necessarily translate to higher tax revenues in the long run, especially when you're talking about higher taxes at the level of a state or province. When you increase taxes you get increased revenue from those taxes, but you also get decreased revenue from individuals and companies leaving the state. Depending on what the current tax-rate differential is between your state and comparable alternatives for individuals and companies, the loss of revenue from increasing taxes can actually be greater than the increase they produced. If you're already in this position, reducing taxes can actually increase tax revenue.
Now, you were upset with the cuts he made but you don't have any idea where that money should have come from? When you look at New Jersey's budget nearly 66% of it is spending on healthcare and education. Even if you tried to protect these areas from spending cuts (in all likelyhood) the majority of spending cuts in dollar value would have to come in these areas.
