To Avoid Raising Taxes, States Try To Rack Up Fees
In the January 1, 2010 National Public Radio (NPR) story " To Avoid Raising Taxes, States Try To Rack Up Fees ," Greg Allen reports that U.S. states are using numerous fees and other tax increases to reduce budget shortfalls. Few ideas are more unpopular during a recession than increasing taxes. So, how can states, counties and municipalities that are struggling financially raise more money? For many, the answer is fees. Nearly every state in the country struggled to close budget deficits in 2009, and for many the struggle is not over yet. The National Conference of State Legislatures reports that 36 states already have budget deficits for the fiscal year that began in September, and the gaps are only expected to grow as 2010 progresses. There have been a lot of cuts, and more are coming. Governors and legislatures have laid off and furloughed state employees, tapped rainy-day funds and cut spending on education and health care. They have also raised revenue — what most peopl...