Monday, February 22, 2010

Demands on Government Services-2

But how to pay for all the services the public demands without increasing the overall tax base. Nowadays it has become very popular for politicians to raise the taxes on the rich people. But unless it is a Federal tax, the rich people can move to another state where the taxes are low. But you can only tax the rich so much. They cannot support all the demands for social services and keep on paying exorbitant taxes.

A broad based tax structure should be enacted and explained by the politicians to the public without which the states would not be able to pay for the services their citizens demand. Remember most of the states are by law required to balance the budget and furthermore they can only generate revenue by taxing people unlike the federal government which can run deficits and print money to pay for all the programs.

A tax on cigarettes and alcohol based liquids should be start plus the states should increase the tax on gasoline products and also they should be taxing services at the same level as they do for the goods industry. Increasing the entrance fees on parks and also freezing pension plans and wages to current levels should be a good start. Most of the government should move their stuff online in order to reduce paper waste (although it would be inconvenient for poor people without access to computers) but this can be tackled by increased access to computers in libraries (which are in every town).

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