I really don’t think this post is needed. Some things simply should not require explanation. However, I suspect there are some things that are overlooked, even by PhD’s. ….or should I say, especially by PhD’s. In spite of all the news I watch, no one, but no one has pointed out any of the following. Sometimes, I wonder if even the Republicans are aware of it.
States such as New York, New Jersey and California will collect a great deal more in income taxes. It is unavoidable. If the wages increase, revenue from the state income taxes increase. If the number of people earning wages increase, then the revenues will increase.
If the GDP grows from 2% to 4%, it only stands to reason that revenues will drastically increase, even though the tax rates have decreased. This is especially true for states. They didn’t decrease their rates.
Sales have increased. That means revenue from sales tax have increased. This has helped states, counties and cities, this without lifting a finger.
This, of course assumes that the people within those states don’t go running to other states. I know I did. Up until 1973, I lived mostly in California. Then I got smart and left. (I liked the state, just not the people running it)
There is, of course, one more obvious thing. For every dollar that comes into the state treasuries, they will spend two. It’s just the way those politicians think. They love to tax and spend. It is from where they draw all their power. …and if there’s one thing politicians like, it’s power. That should be casual to the most obvious observer.