A recent study by the Legislative Fiscal Bureau reported that had the proposed Taxpayer Protection Amendment been in effect for the past 20 years, the state would have collected $1.9 billion less in taxes in 2003-’04, a 14% cut. Taxpayers certainly could have used that money, and the state economy might have benefited substantially as a result. That’s good news, and the bureau’s analysis provides information necessary to furthering the debate on the amendment.
But the fiscal bureau analysis can only look at the “heads” side of the coin: Taxpayers would have had more money in their pockets. And, yes, that is a good thing. On the “tails” side, though, is this: State government would have had $1.9 billion less to provide the services that citizens demand. Maybe that’s a good thing; maybe state government does spend too much on too many programs. Certainly, that’s something citizens need to examine.