WSJ: State, Local Fiscal Burdens Drag on Economic Recovery
The Wall Street Journal featured UT economics professor Bill Fox in this story about state and local fiscal burdens and their strain on economic recovery. Fox noted a political pitfall: Taxpayers may say they want fiscal prudence but it still is hard for some to accept that their tax money is being redirected to a bank account instead of spent on services like trash collection or education. Tax dollars keep going up but they don’t see what they’re getting back. He added that when states save the money, it doesn’t necessarily mean they’re overcharging on taxes but that some of the money has been directed to fund long-term needs and for cushion in tough times.