State/local government layoffs

[CARLHAYDEN]

A few months ago I explained how state and local governments would have to begin layoffs in 2010.  A number of governments have sought to avoid this by the use of furloughs.  Well, sometimes that won't work:

From AP

LA Mayor Orders 1,000 Layoffs to Close Budget Gap

Thursday, 04 Feb 2010 09:24 PM
   
The mayor of Los Angeles has ordered the immediate layoff of 1,000 city employees to help to balance the city's budget.

Mayor Antonio Villaraigosa (vee-ah-reye-GOH'-sah) took the action Thursday, after the City Council voted unanimously a day earlier to postpone any action on job cuts for 30 days while they explore other options.

Villaraigosa says his move will strengthen the city's credit rating and its long-term fiscal health.

City budget analyst Miguel Santana says the cuts are necessary because of the city's $208 million budget gap. He says delays will only result in bigger cuts later.

[memphis]

Yeah, just about every state/municipality in the country is broke.  They got through 2009 on stimulus money, which is no longer available. Tennessee really needs to suck it up and begin an income tax on high earners. Of course, the last time this was proposed, talk radio incited a riot on downtown Nashville where people even went to so far as to break windows at the capital building.

[TeePee4Prez]

Yeah, just about every state/municipality in the country is broke.  They got through 2009 on stimulus money, which is no longer available. Tennessee really needs to suck it up and begin an income tax on high earners. Of course, the last time this was proposed, talk radio incited a riot on downtown Nashville where people even went to so far as to break windows at the capital building.

Problem is New Jersey does just that, but then you'll get the problem of people wanting to move to other states.  At least with NJ, people who are of working age almost have to put up with the taxes because their schools are really good and the proximity to New York and Philadelphia.  Thing is could a state like TN do it?  Pennsylvania is another great state for high income earners and retirees, but the problem is in-state tuition for state colleges is really high.

[memphis]

Yeah, just about every state/municipality in the country is broke.  They got through 2009 on stimulus money, which is no longer available. Tennessee really needs to suck it up and begin an income tax on high earners. Of course, the last time this was proposed, talk radio incited a riot on downtown Nashville where people even went to so far as to break windows at the capital building.

Problem is New Jersey does just that, but then you'll get the problem of people wanting to move to other states.  At least with NJ, people who are of working age almost have to put up with the taxes because their schools are really good and the proximity to New York and Philadelphia.  Thing is could a state like TN do it?  Pennsylvania is another great state for high income earners and retirees, but the problem is in-state tuition for state colleges is really high.

We could very easily cut our sales tax, which is one of the highest in the nation, if we instituted an income tax. This would make our state more attractive to most people because most people would pay less under an income tax.

[TeePee4Prez]

Yeah, just about every state/municipality in the country is broke.  They got through 2009 on stimulus money, which is no longer available. Tennessee really needs to suck it up and begin an income tax on high earners. Of course, the last time this was proposed, talk radio incited a riot on downtown Nashville where people even went to so far as to break windows at the capital building.

Problem is New Jersey does just that, but then you'll get the problem of people wanting to move to other states.  At least with NJ, people who are of working age almost have to put up with the taxes because their schools are really good and the proximity to New York and Philadelphia.  Thing is could a state like TN do it?  Pennsylvania is another great state for high income earners and retirees, but the problem is in-state tuition for state colleges is really high.

We could very easily cut our sales tax, which is one of the highest in the nation, if we instituted an income tax. This would make our state more attractive to most people because most people would pay less under an income tax.

Problem is sales taxes are easier to increase than income or property taxes.  You would have a right winged populist backlash like none other if a state goes from a sales heavy tax to income.  I know a more income based tax as opposed to sales and/or property would benefit me and probably you over more established, older homeowners.  Problem is people don't see the benefits they're getting that easily.  I laugh hysterically at people in New Jersey who bitch at their property taxes.  Uh.. hello, your kids are going to the best public schools in the country.  And I even challenge these same people to move to Philly where you're taxed over 7% on the first dollar.  Not to mention you have to shell out higher car insurance and probably private/parochial school tuition for your kid to even go to an average performing school.