Tax Increases Aren't the Only Way to Eliminate a Deficit

Kelly McCutchen at the Georgia Public Policy Foundation reminds Georgians that it could be worse; we could be residents of New York or California. McCutchen writes that the state's spending for 2008, 2009 and 2010 is projected to be $38.5 billion, $37.7 billion and $38.8 billion, respectively. At a time when so many are calling for increased government spending, Georgia has been able to avoid uncomfortable tax increases due largely to restricted spending.

Readers are given charts detailing state spending by revenue source, state spending against population and inflation and state education spending per student. A study by the American Legislative Exchange Council is referrenced in which the following conclusion is reached: 'The historical evidence is clear. States that keep spending and taxes low exhibit the best economic results, while states that follow the tax-and-spend path lag far behind.'

Keep that in mind the next time a politician advocates a tax increase as the only solution during a down economy.