Sunday, March 02, 2008

Fat cows and lean cows

I was so sick last week that all I can remember is Tom Didier dressed like a Pharaoh. Which reminds me of the Bible story of when the Pharaoh dreamed about seven lean cows eating seven fat cows. Joseph interpreted this to mean that there would be seven years of plenty followed by seven years of famine.

Last year, the city council was coming up with new and exciting ways to spend our money. This year, the state is making the city cap property taxes, so the city has to cut back.

Once upon a time the state was running a surplus. The surplus problem was fixed by the Build Indiana Fund. After that, the sales tax had to be increased to make ends meet.

Governments should not treat surplus cash like a problem to be solved. When the economy is good and revenues are high, set aside money in a rainy day fund or cut taxes. Government and economy alike will be that much better able to weather the next storm.

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