Several states, including Maryland and New Jersey, have reported a decline in their millionaire population in the past couple of years, and advocates for cutting taxes have been quick to argue that this shows high-income residents are fleeing to other states with lower taxes.
BEYOND THE NUMBERS
Congress is back in session and will consider extending the parts of last year’s Recovery Act that have provided extra weeks of jobless benefits and aid to cash-strapped states. The graphs below show why it needs to do both.
In a New York Times op-ed, Chris Edley rightly warns that state budget cuts and tax increases are undermining federal efforts to boost the economy; that’s why we’ve recommended (most recently here) that Congress extend the state fiscal assistance in last year’s Recovery Act.
Those who are blaming states for their severe budget shortfalls and arguing that Congress shouldn’t provide much-needed assistance until states “clean up their act” (here’s a recent example) are wrong on both counts.
Jon Shure, deputy director of state fiscal policy, appeared on the CBS Evening News with Katie Couric to discuss implications of the budget problems states are facing in the recession, including the potential loss of 900,000 private- and public-sector jobs due to budget cuts.
Today, we sat down with Senior Advisor Iris Lav to discuss property taxes, and good and bad ways to address concerns about rising property tax bills.
The new fiscal year starts in most states tomorrow, but don’t expect governors and state legislators to mark the occasion with champagne. From Augusta to Austin, Tallahassee to Sacramento, the mood is dour.
Combining bad economics with bad fiscal policy, opponents are on the verge of defeating the compromise jobs bill before the Senate, and we can expect more hardship and a slower economic recovery as a result.
As I’ve said before, the case for extending unemployment insurance (UI) benefits and state fiscal assistance is powerful:
When New Jersey Governor Chris Christie claimed that his proposed budget would “protect and care for the most vulnerable among us,” he apparently was referring to the state’s millionaires rather than its low-wage workers.