Abstract

Can the business community afford lower taxes, particularly state and local taxes? The answer is yes only if it and the public at large are willing to give up many free services and forego the often hefty subsidies they now enjoy in the form of below-cost charges for the use of many public facilities. While consumption of local and state government services has doubled in the past decade, tax revenues have not. Where is the money coming from? Federal subsidies, also derived from taxes, are one answer. Another, outlined here, is to make the public, including business, pay for services it gets from government.