Sunday, September 22, 2024

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Taxes necessary to run government

This is in response to the editorial "Helpful hikes," (SN 1/28).

Calling for "no new taxes" doesn't help state government, it only keeps revenue from services.

When an economy goes into a recession, tax revenues fall. This forces the state Legislature to take action. There have been proposals to raise taxes to make up for this revenue shortfall. Higher taxes or new taxes are the last thing the economy needs right now. Increased taxes on individuals and businesses would have the effect of further depressing the economy. This in turn would reduce tax revenues.

An example of this can be seen in the history of our own state. In the late 1980s under the Blanchard governorship, taxes were increased to make up for revenue shortfalls. This depressed the economy so much that Michigan was known as "Capital of the Rust Belt." In the early 1990s under Gov. John Engler, taxes were reduced and state expenses cut. This helped Michigan's economy come out of recession and into the boom of the '90s.

Since the state of Michigan is in a recession right now, the best way to get the economy going is to cut expenses and taxes. At a time when individuals and businesses are tightening their belts and reducing expenses, should the government not do the same?

Aaron Kaeb
biosystems engineering junior

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