I wonder how states will handle the decline in taxes they

[raccoon]

Took in this year.

In SC, it’s the law that the state has to balance the budget every year. Probably other states have a similar law.

I wonder if SC (and other states as well) will have a reduction in force. I hope not but it seems possible, if not probable.

[Ace Rothstein]

1. Lots of layoffs and reductions in services.

This is coming to every state and municipality in the country.

[MyOwnPeace]

2. Don't know about the others,

but I'm sure Moscow Mitch will "arrange" for some extra help for his humble state (and you KNOW Cuomo will be watching!).

[Eliot Rosewater]

3. Wet dream come true for the fascist corporate fucks.

Then they will destroy SS because of payroll taxes.

Then they destroy government period.

[Hoyt]

4. Going to be a big issue for states and localities. I doubt most states, localities

can even comprehend how bad it will be, at this point. A lot depends on how long it goes, and what feds do.

I’ll bet a lot of states will impose across the board cuts, including salaries, and delay big projects. And that has downsides too.

[gab13by13]

5. 2 choices,

!. Raise taxes.
2. Cut workers and services.

[Wellstone ruled]

6. You are right on.

States like ours will increase Sales Taxes as well as the Fees(taxes)on all our Services.

It sure as hell wont be on the Casino's.

[Cracklin Charlie]

13. 3. Sell weed.

Fill coffers with tax dollars.

[rickford66]

7. Paul Krugman explained how the Blue states will fare better than the Red states.

The Blue states depend upon income taxes and have a high percentage of people with high salaried incomes. And many of them continue to work at home. The Red states depend more on sales taxes so with less consumer spending they're going to have a hard time. This doesn't apply to all Blue and Red states, but most. This must have been last night on Ari I think. Great interview if someone can find and post it.

[Igel]

8. When I lived in NYS there was a bit of a budget crisis.

It was in 2000+ and the stock market had taken a plunge.

The state relied heavily on money generated by having a lot of stock brokers based in NY, so that no matter where you lived--Houston, San Fran, Seattle, Atlanta, or Iowa City, if you bought/sold stocks you often went through NY.

Bonuses were way down.

Calif. had the same problem.

Remember, in 2008-2009 workers had a decline in income. The top 20% had a bigger decline in income. The top 5% had an even bigger decline in income. The more progressive your income tax, the more you rely on the top 10% to fund everything. What hurts the top 10% causes more pain to the tax stream dependent on them.

[rickford66]

11. Watch the interview if you can find it.

Krugman is a "stable genius". I only tried to roughly summarize what he said.

[roamer65]

9. The solution for blue states is to behave like Canadian provinces.

Pass graduated income taxes and run deficits.

For example, Ontario does both and it does just fine.

Also start to garnish federal income tax withholdings to reclaim the amount that they overpay to the federal government. Force the red states to increase their taxes.

Sorry, red states but the time of bailing you out, year after year will be coming to an end very soon.

[Laelth]

10. They're going to have to do something.

The balanced budget laws are stupid. I think they’ll start by abolishing them. Then, it’s a tough call. Increasing sales taxes won’t help if people aren’t buying anything. The states face a serious conundrum.

-Laelth

[Cracklin Charlie]

12. I saw an ingenious solution on Twitter just the other day.

Legalize weed coast to coast.

States should be able to recoup at least some portion of their lost revenue.

I think it’s a great idea.