-------------------------
Via Workers World News Service
Reprinted from the Nov. 7, 2002
issue of Workers World newspaper
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A FREIGHT TRAIN HEADING OUR WAY: 
STATE BUDGET AXES TO FALL AFTER ELECTIONS

By Deirdre Griswold

The budget crisis in Maine is so severe that tax forms may 
not get printed and delivered in time for next year's 
filing. State legislators can't agree on what the tax laws 
should say in time for the printer's deadline.

The governor of Massachusetts wants to cut an additional 
$300 million from the state budget, which will eat into 
schools and Medicaid.

Virginia needs to borrow $1 billion to repair its crumbling 
schools and parks.

Minnesota's budget deficit is now over $3 billion. The state 
is contemplating painful cuts in education, health and human 
services.

In Tulsa, Okla., once a center of fabulous oil wealth, 500 
low-income mental patients may lose their health care 
because of the state budget crisis.

School districts across Texas are in crisis and face either 
raising taxes or cutting budgets. Reports a special 
committee on revenue and school funding: "Texas is 
perilously close to a collapse of its public school system." 
(Long View News-Journal)

Billionaire New York mayor Michael Bloomberg flies two state 
legislators to his fancy Bermuda estate for a private 
discussion on the state's budget crisis. On his return he 
announces a city hiring freeze and an additional 2.5 percent 
cut in city agencies' budgets on top of a 7.5 percent cut 
earlier.

It's the same all over this country.

Some 37 states are reporting severe budget crises as tax 
revenues dip with the economic recession. There is no 
question that the axe will fall on many thousands of workers 
as soon as the elections are over and cuts in services will 
deepen.

For years, the federal government has pushed the burden of 
social programs onto the states so it could devote itself 
with greater single-mindedness to the task of building the 
most ominous and destructive armed force the world has ever 
known. At the same time, the rich set up think tanks and 
committees of legal experts to "guide" the Congress through 
passing tax cuts that save them billions of dollars at the 
people's expense.

Now the other shoe is dropping: a push for higher sales 
taxes.

No one likes income taxes, but they are supposed to be 
structured "progressively"--in theory, at any rate, the rich 
are supposed to pay at a higher rate than those who can 
barely live on their meager earnings. Now that many states 
have eliminated income taxes altogether, and taxes on stock 
market earnings as well as wages are down, the right wingers 
have a new cause: raise sales taxes on everything from 
gasoline to housewares.

Sales taxes always hit the poor the hardest. The rich have 
gimmicks to avoid them, like getting themselves 
incorporated. This writer knows someone who once worked in 
the office of the Rockefeller family foundation. These 
billionaires didn't even pay taxes on their toilet paper. 
They bought it tax-free through the foundation.

But there's only so much blood you can get from a stone. 
Workers can't pay much more than they are doing already. So 
the other option the capitalist politicians provide is 
budget cuts. Cut schools, hospitals, parks, libraries and 
all the other necessary services.

Cuts are just another word for layoffs. When factories 
started closing, service jobs were supposed to be the new 
growth industry. Now these are the very jobs that are 
threatened, along with the services they provide.

Layoffs and cutbacks on top of recession and war--that's 
what the rulers of the richest, most powerful country in the 
world are offering the people. They're asking for a social 
explosion--and they'll get it.

- END -

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