Sunday, February 8, 2009

Assignment #2, J.Helms

The article "Scoppe: Government has to make choices families and businesses don't," by, Cindi Ross Scoppe, was published in The State. This article was written to compare between families and businesses to the state government on spending money when there is a shortage on money. Families will cut back on spending and be more frugal. Businesses will cut back on jobs and expenditures. The government has a big decision to make when it comes to spending money. The government's job is to look out for the best interest of the people. Since South Carolina cannot have a deficit, the choice has to be made to either raise or reduce taxes. The question is: should the state government raise taxes to be able to spend on local purchases and state salaries, or reduce taxes to put more money in people's hands? Cutting taxes will also reduce government spending, which would cause more people to lose their jobs. The bottom line is, people will lose their jobs whether the government raises or reduces taxes.