What's going on with Delaware budget?
Our upstate legislators have hoodwinked us again. Four years ago they told us that certain taxes (individual and business) had to be raised because the downturn in the economy resulted in insufficient tax revenue to meet what they thought were the "necessary" expenditures of our state government.
But, they said, the economy may improve, and these increases will end in 2013.
Apparently, they have now determined that the economy is still in the tank, and the upstaters are voting to make the increases permanent to fund the governor's $3.7 billion budget.
To their credit, most of our Sussex County legislators have taken the reasonable position that, while the economy has not recovered sufficiently, the four tax increases should remain in effect for another period of years, at which time Delaware's economic recovery will again be determined. If the increased tax revenue is then necessary, the increases would remain in effect for another period of years.
Increases in taxes and the subsequent increase in the number and scope of government programs led to the current crises in several European countries.
Governments set up programs which could not be sustained. Taxes had been raised to the point where they could be raised no further. People who came to rely upon their government found nowhere to turn, other than turn against the government and their elected officials. Governments had to reduce or cut programs, and try to borrow from other countries.
Some say "that could never happen here." But it could.