Scary State Budget Deficits:-3

So the property taxes may not be the cure all in all states but they can be really helpful in California. Next although it is painful but the education budget should be cut and gasoline taxes should be raised. Sales taxes in most states are already high so it is useless to add more to these taxes. If they want to spur growth, most of the things should be done online and corporate taxes should be cut. Luring companies with tax cuts will help in the short term but why give it to one big company. Spread the incentives around so that you can have diversified bunch of industries and less reliant on one particular industry.

As is being done in the private sector regarding steadily erosion of pension and replacement of it by 401k and other private plans. So (although it will be highly unpopular) the pensions guaranteed to the public sector employees should either be steadily decreased or completely replaced by private sector savings. People are smart enough to make their own decisions then to rely on big Brother (or daddy) to make the decisions for them.

Sin taxes like alcohol and cigarettes taxes should be raised much higher than they are now. But I really oppose the leasing of the toll roads on some states to private sector so that the State can have a one shot money infusion. These are too lucrative to be handed over to the private sector for much less money. People think that the private sector may be more efficient in handling money than the public sector. But as this economy has showed private sector can be as inept as the public sector. Since the economy is fluctuating so much and there is not much chance that it will rebound soon, the states should make only one or at most 2 years contract with unions so that they may have the flexibility to change when the revenues go up or down and they should stop catering or pampering the Unions (although I have nothing against them) as times have now changed and the world has changed. We should be ready to accept the new economic times we are in lest we may fall down very hard.