Budget Crisis in Alabama (sales, loans, house)

[financelife]

From AP:

Alabama
Budget gap (as a % of the total budget):
9.5%
Gap: $784 million

Alabama closed some corporate tax loopholes, and made cuts to colleges and universities.

[deesonic]

Originally Posted by financelife

and made cuts to colleges and universities.

Don't I know it.

[Charles]

Originally Posted by financelife

From AP:

Alabama
Budget gap (as a % of the total budget):
9.5%
Gap: $784 million

Alabama closed some corporate tax loopholes, and made cuts to colleges and universities.

Any recommendations as to what should be done to remedy this? Raise taxes? Cut more services?

[financelife]

Tax rates would be the only thing I see being a solution. As the economy dips, so will consumer spending and lost sales tax revenues.

[Reactionary]

financelife - raising taxes 'as the economy dips' doesn't help Alabama citizens keep their own money in rough times. I don't think that people whose 'consumer spending' dips would be willing to spend their remaining money on more Government (i.e., I'd really like to buy shoes for my kids but the State needs the money instead).

Prosecuting corrupt politicians to stop them from stealing would help (i.e. one corrupt politician, former Speaker of the State House Roy Johnson, stole about $20 million - closing that 'loophole' probably saved as much as closing corporate loopholes).

The article originates from the "non-partisan" Center on Budget and Policy Priorities (from their website: "It is usually referred to as liberal, which it is..."). Unsurprisingly, the CBPP doesn't support budget cuts...

Link to financelife's article:
http://finance.yahoo.com/loans/artic...for-Themselves