An Unsustainable Direction?

On April 24, 2015, in Economics, Politics, Rock Hall, by An American

According to the June 30, 2014 Financial Statement for the Town of Rock Hall, the town’s total expenses increased from $2,264K in FY2013 to $2,426K in FY2014, an increase of 7.2%. The personal income for the town is apparently not known, but personal income for Kent County increased by 0.8% in 2013. Clearly, such a rapid increase in spending compared with people’s ability to pay taxes cannot continue forever. An example of what such a policy can eventually result in is the situation the City of Baltimore finds itself in. As industry and their workers have fled, the demand for social services has increased, and the city’s ability to pay for these services has decreased. Baltimore has been kept going as well as it has by the state’s increasing taxes on the rest of us and transferring our money to help the city.

 

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