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No. They are States most effected by the housing bubble and auto sales slumps.
Michigan, Illinois, Nevada, Arizona all have below average State tax burdens.
What does the tax burden have to do with it? That further proves that the left wing socialist theories don't pan out. In the states you listed, they won't raise the tax buden yet still provide an obsene amount of "services". Meaning, of course they are going to go broke.
Going further, states listed in the OP are blue, and on the crux of a major financial melt down too.
Both of these factors can be related to the fact that they spend MORE than they take in from taxes. This is a progressive mentality. Both the OP and your post reinforce this issue.
People always say "raise taxes raise taxes so big brother can help me"... in states where they did do this, they are in dire straights. In states where they provide these big brother programs and didnt raise taxes, they are in the same boat. This leads me to believe that the issue is the progressive mentality on social services...
I remember when New Jersey finally approved the state income tax, I believe it was in the late 1970's. The sentiment was this would allow the horrible property taxes to be lowered to a level similar to other states.
Fast forward a few decades, the state income tax rate is substantially higher than the rate initially passed (2.5% on incomes above $20K), and the real estate tax rates never were lowered.
Not to mention the sales tax increases the past few decades...
Throw in NJ's hostility to business and the private sector and you have a totally Progressive Nirvana
and didn't they legalize gambling about the same time?
Nita
Good point, I forgot about the gambling too.
Looking at it from a long term perspective, it is difficult to see how they doubled the sales tax rate, established and then tripled the income tax rates, and retained high property tax (3% of property value) rates yet still lack revenue.
Without getting into the liberal vs conservative stuff, something is seriously wrong with New Jersey.
Wow, and none of these states are in the BOTTOM 10 of per capita income, leaving the poorest states in relatively good condition. What's up with that? Could it be that they are BLUE in political philosophy?
Better than that,
Guess which states have the highest number of illegal aliens, and liberals protecting them.
Also eye opening is why Wisconsin is in financial dire straits ...it's a welfare magnet.
"Wisconsin had one of the five worst migration patterns in the United States from 2000 to 2006. Higher income individuals left Wisconsin. Individuals on the lowest rung of the economic ladder migrated to Wisconsin."
Why?
"According to that presentation, Wisconsin has the highest welfare benefits in the Midwest. Welfare reform imposed time limits on benefits and introduced work requirements. But Wisconsin retained its generous benefit levels. They are nearly 10 percent higher than in Minnesota and almost 30 percent higher than in Illinois." State of Wisconsin still a welfare magnet:
WISCONSIN STATE JOURNAL (http://www.madison.com/wsj/home/forum/315521 - broken link)
Wow, and none of these states are in the BOTTOM 10 of per capita income, leaving the poorest states in relatively good condition. What's up with that? Could it be that they are BLUE in political philosophy?
I don't know about all of the states, but Florida is controlled by Republicans in the state Senate, House, and Governor's office.
I know it's tempting for some to blame everything on Democrats, but I don't think budget problems are solely determined by which political party is in charge.
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