Photo by bjornmeansbear/flickr.com
On July 1, the beginning of the new fiscal year for New Mexico, taxes on cigarettes and most goods and services went up. These increases are expected to generate $160 million a year in revenue to help cover the state’s budget deficit ($600 million in last year’s budget) and prevent more furloughs, layoffs and deeper cuts in service. The state has already trimmed $700 million of spending in the last two years.
The original package of tax increases also included the now-infamous tax on certain foods considered unhealthy like white bread, candy, soda and – I know – flour tortillas. Governor Richardson vetoed it, leaving a $68 million hole in the state’s budget. The reaction to these tax increases will surely be contradictory and filled with heated rhetoric from both sides.
We, the people, have spoken: Balance the budget but don’t cut services – or raise taxes
Although not specific to New Mexico, these results from a recent Pew Research Center poll underscore the impossible situation that we’ve put ourselves and our policymakers in with regards to balancing state budgets. Basically, we want them to get rid of the deficit without raising taxes or cutting spending.
The study found that although 58 percent of respondents believe states should balance their budgets without additional support from the federal government, there is no clear consensus about how that should be done. There’s little public support for spending cuts:
- 50 percent oppose cuts in funding for transportation.
- 65 percent oppose cuts in health services.
- 71 percent oppose cuts for police, fire and other public safety programs.
- 73 percent oppose cuts in funding for K-12 public schools.
With such little support for cutting spending, I would guess the public supports raising taxes. Nope. 58 percent of respondents opposed raising taxes.
With the country so divided about how to handle our troubled economy, what are policymakers to do?
We need our leaders to lead.
It’s clear that the public doesn’t know what it wants and knows even less how to get there. That’s where leaders come in. It’s their job to ignore the contradictions in studies like these and move forward with the necessary steps to ensure our long-term fiscal safety.
But no one wants responsibility
In Doña Ana County, for example, county commissioners are considering proposing a modest tax increase (the most expensive of these increases would add only about 25 cents for every 100 dollars spent) to prevent layoffs and failure in services. Fair enough. If they believe this is what’s necessary, then they should increase the tax.
Instead they are considering putting the question to the voters. Bad idea. As the above poll indicates, the public is not sure what they want or how to get it. In fact, most of the public is not qualified to know what the right course is nor are they far-sighted enough to make the right decisions.
Again, that’s why we elect leaders… to lead. That’s what our commissioners need to do. If a tax increase is necessary, then make it happen. Be a leader by making the tough decision and then effectively articulating to the public why the policy was necessary. Be a leader by accepting the consequences of doing what is in the best long-term interest of your community.
Putting this question to the voters is only a way for our leaders to avoid responsibility for taking the necessary steps – in this case, raising taxes. We live in a republic, not a radical democracy, so that our public policy is not subject only to the whims of the mob.
The public’s burden
The problem for the commissioners (and everyone else, for that matter) is that so little of the public is listening. Furthermore, many of those who are listening are not persuadable. Our polarized, exaggerated national debate (and our tendency toward confirmation bias) make it nearly impossible for a meaningful public dialogue to occur.
It’s even worse on the local level where it seems people pay more attention to the Sound-Off section of the Las Cruces Sun-News than the reporting.
So, if we want true leaders, we have to be good, engaged citizens. This involves commitment to the greater good and careful attention to the local issues that affect our communities. Otherwise, how can we assess our leaders’ performance fairly? If we can’t guarantee our leaders that we will be fair with them, how can we expect them to be straightforward with us?
Nick Voges is the blogger behind NMPolitics.net’s Zeitgeist. E-mail him at nick@nmpolitics.net.