It is not uncommon for politicians to campaign on promises of no new taxes, yet when the going gets tough, abandon that promise in favor of the easiest fix of all–a bailout by hardworking Alabamians. Stephen Moore, Chief Economist of the Heritage Foundation and Wall Street Journal contributor, agreed to share his thoughts with API on the proposed tax increases under consideration by the Alabama Legislature as the state faces a budget deficit.
The most highly sought-after economics expert by 2016 GOP presidential hopefuls, Moore surveys the potential damage to the state’s economy that will likely occur as a result of raising taxes. At a time when Alabama’s economy lags behind most other states, Moore notes that tax increases will make it difficult to both compete for new jobs and maintain existing jobs in Alabama.
Advertising higher taxes as the only option for closing the budget gap without cutting government services presents a false choice. Rather, the current budget crisis should serve as an impetus for substantive reforms that tackle the real drivers behind the shortfall and will provide the state financial stability for the long-term. Alabama’s lawmakers should continue on in this worthy pursuit and stay true to their campaign promises.