During the pandemic, the federal government massively increased its transfers to state and local governments to help them deal with public health issues.
Red states used their COVID money to cut state income taxes for billionaires. Like 10 red states did this. They showed their obvious priorities.
But now the COVID money is gone and the red states have budget cliffs looming. Guess they’ll have to cut programs for the poor, huh?
Interestingly, here in Massachusetts, the republicans were wiped from office and we actually raised taxes on rich people. People who make more than a million a year get a new 4% state income tax on the money they make over a million. That tax gives free breakfast and lunch to every kid in the state.
The gap between states will be extremely wide in 2024.
If sales tax revenues are falling and they have a target revenue in mind they can just raise the rate of sales tax to get to that goal.
2 comments
Everyone saw this one coming.
During the pandemic, the federal government massively increased its transfers to state and local governments to help them deal with public health issues.
Red states used their COVID money to cut state income taxes for billionaires. Like 10 red states did this. They showed their obvious priorities.
But now the COVID money is gone and the red states have budget cliffs looming. Guess they’ll have to cut programs for the poor, huh?
Interestingly, here in Massachusetts, the republicans were wiped from office and we actually raised taxes on rich people. People who make more than a million a year get a new 4% state income tax on the money they make over a million. That tax gives free breakfast and lunch to every kid in the state.
The gap between states will be extremely wide in 2024.
If sales tax revenues are falling and they have a target revenue in mind they can just raise the rate of sales tax to get to that goal.
Not sure why anyone is overthinking this.