Please Replace Gov. Strickland’s “Stimulus Package” with The Tiffin Advertiser-Tribune’s
Published May 20th, 2008 @ 9:23 am. Tags: stimulus, strickland, taxesThe infrastructure work likely is needed, although the economic benefit of the projects — as measured by bringing money into the state — is questionable. [...]
The crux of the issue is how to fund the work. Raising taxes — that is, taking more money out of the pockets of Ohioans — would reduce the money residents have left to spend, thus being counter-productive for a plan intended to stimulate the state’s economy.
Borrowing against future tax revenue might not be much better — especially if the funds being borrowed are from a user fee, such as turnpike tolls. The state should think carefully about treating the turnpike as a cash cow; if current tolls are resulting in excess funds, perhaps rates should be lowered.
After all, the best way for a government to stimulate an economy is to reduce spending and taxation.


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