Question
Over the last few years, many state governments have reduced tax revenue through tax rate reductions and even elimination of certain taxes. At the federal
Over the last few years, many state governments have reduced tax revenue through tax rate reductions and even elimination of certain taxes. At the federal government level, income tax rates continue to be reduced, most recently as enacted by the Tax Cuts and Jobs Act of 2017 - reductions that will increase the federal budget deficit. (And this was BEFORE the enormous increases to deficits and debt that will be realized by the CARES Act and other federal responses to COVID-19).
Putting aside for the moment our current economic situation due to COVID-19 circumstances.
How can we sufficiently fund governmental programs (schools, transportation, public safety, entitlement programs, etc) when state and federal policymakers are decreasing tax revenue and increasing deficits/debt?
Should taxpayers reduce their expectations of governmental services to coincide with reduced revenues? Assuming they do not want a reduction in governmental services, how do you convince them to pay taxes at a level to sufficiently fund them?
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