Big trouble, that’s what.
The print edition of today’s Washington Post led off with a story reporting that state and local governments have been compelled to lay off 5 percent of their employees since the pandemic began, even as the pandemic has asked those governments to provide emergency services on a scale to which they’re unaccustomed.
The reason, of course, is that the pandemic has greatly reduced major sources of tax revenue. Hawaii has suffered from the drop in tourism; the oil-producing states of Alaska and North Dakota have suffered the consequences of the drop in driving.
One subject that the article neglects to consider, however, is what kind of taxes the various states levy. And it’s precisely on this subject that the major differences in the individual states’ finances become clear.
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