Tax Hikes Are Not The Way to Fix Budget Deficit Mess

An article today in the Wall Street Journal highlights why tax increases of any sort are not the way for the federal government and states to fix their self-created budget deficits.

"Personal income in 42 states fell in 2009, the Commerce Department said Thursday.

Nationally, personal income from wages, dividends, rent, retirement plans and government benefits declined 1.7% last year, unadjusted for inflation."

Not that tax hikes are ever a good idea, but right now with personal incomes already falling year over year, taxpayers have no room to withstand the further decline in their spending and saving power that would be created by additional taxes.

Politicians are just going to have to figure out for the first time in their careers how to best reduce spending on various programs, as the primary means of getting their fiscal houses in order.