States Considering Drastic Tax Hikes?

The economic downturn that we are in the midst of is causing states to consider raising taxes on its citizens. This potential tax hike could be devastating in its size and scope. A recent WebCPA article discusses the situation:

"With no relief in sight and discretionary spending already cut to the bone, the pressure is mounting for state legislatures to stop the revenue drain with heavier taxes."

Although the article is simply trying to foreshadow tax hikes that may be on the horizon, the idea that states have already cut discretionary spending "to the bone" is utterly ridiculous.

One example of 'fiscal austerity' that the article discusses is that the state of Arizona "slashed wages to state employees by 5 percent".

5 percent is considered to be "slashing"?!? Come on. If Arizona had reduced state employee pay by 30% to 40%, then we can talk about "slashing".

How much has pay per state employee in Arizona risen over the past 5 or 10 years? How much are Arizona state employees making, when counting all the benefits (including pensions) they are entitled to? The article does not discuss this issue.

The bottom line is that states such as Arizona should be doing a whole heck of lot more belt-tightening before they head back to voters and ask for more money via increased taxes.