In the ongoing economic crisis, the last thing government at any level should be doing is raising taxes.
Our people cannot afford higher taxes, for one thing. And tax increases would discourage both private spending and investment, which are our best chance to enlarge our economy enough to really cut unemployment.
So it was alarming to read a recent headline noting that “Tennessee city, county budget shortages spur talk of taxes.” The Associated Press article said cities around the state are having to lay off workers, reduce benefits and postpone projects. It said tight city and county budgets have “given new ammunition to supporters of a tax increase at the state level.”
Wrong! While taking more dollars in taxes from families and businesses might seem an easy way to get more money for government, it would have long-term negative consequences.
Government is certainly not going through greater pain than families go through when an earner is laid off or wages don’t increase. Many Tennessee families are simply having to make do with less, whether by giving up vacations, keeping well-used cars when they might prefer newer models, or clipping coupons.