States Turning to Last Resorts in Budget Crisis Raise Taxes

In Illinois, the Democratic-led legislature is fighting a plan by Gov. Patrick J. Quinn, also a Democrat, to balance the new budget by raising income taxes.

In Massachusetts, Gov. Deval Patrick, a Democrat, has threatened to veto a 25 percent increase in the state sales tax that Democratic legislative leaders say is crucial to help close a $1.5 billion deficit in the new fiscal year.

Gov. Edward G. Rendell of Pennsylvania has proposed raising the state’s income tax by more than 16 percent, to 3.57 percent from 3.07 percent, for three years — and tax increases on myriad consumer goods.

Democratic legislative leaders last week offered alternatives to Mr. Schwarzenegger’s recommended cuts, including levying a 9.9 percent tax on oil extracted in the state and increasing the cigarette tax to $2.37 a pack, from 87 cents. But Mr. Schwarzenegger has vowed to veto any budget that includes new taxes

Governors have recommended increasing taxes and fees by some $24 billion for the coming fiscal year, the survey found. This is on top of more than $726 million they sought in new revenues this year.

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During the campaign, Obama said taxes would not be raised on the poor and middle income Americans. Well tell me now that all Americans will not be paying these taxes and higher prices! As we can now see that instead of the economy getting better under the leadership of Obama, the economy is worst today than it was when he took office and his spending spree is bankruping America!

LINKS:

(1) Obama’s Budget includes $1.6 trillion in New taxes—the Largest Tax Increase in History

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