States Can Offer A Lesson As Gop Proposes Deep Cut Taxes

(AP) — President-elect Donald Trump and congressional Republicans who have pledged to cut federal taxes to boost the economy might consider looking first at lessons learned in GOP-controlled states that adopted similar strategies, only to see growth falter and budget gaps widen. GOP lawmakers are now pushing a plan to raise gasoline taxes and adopt a new registration fee for motorists to help pay for road improvements. The state has faced economic pressures related to a decline in agriculture and oil prices, but the broad-based tax cuts are viewed largely as an unsuccessful effort to stimulate the economy. Other plans include diverting highway money to general government programs, scaling back contributions to the pension program for public employees and liquidating a $317 million investment fund. [...] the promise by Trump and congressional Republicans to repeal the Affordable Care Act would probably reduce the amount of federal money sent to states. Oklahoma's budget woes were deepened by a reduction in the top individual income tax rate that took effect just as the state's economy began to contract amid lower oil and natural gas prices. [...] the Republican governor and GOP-controlled Legislature are considering raising taxes on cigarettes, gasoline and some services to help fill an $870 million budget hole. Every time the government wants to cut," said Marcellius Bell of Oklahoma City, who serves as legal guardian for three adults with severe developmental disabilities, "it seems like they cut services to the disabled, the veterans and the nursing homes.

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