Legislature OKs Budget, Taxes

In response to “ ‘Tax Revolt’ Endures Despite New Increases,” July 14:

The article cites the cyclic nature of tax increases, correlating the increases with a mystic “eight-year curse.” From an economics viewpoint it is interesting to note that the largest state tax hikes have occurred during or just following a recession. This indicates that state budget shortfalls are simply caused by the lack of projected revenue due to a recessionary economy. The examples of Reagan in 1974, Deukmejian in 1983 and the current Wilson tax hike all follow this pattern.

Initially these new taxes are used to fund ongoing programs. But what happens to the surplus when the economy recovers? More pork-barrel projects and more government. I suggest that tax activists need to be the most vigilant to government excess during a recovery and demand a tax decrease when a budget surplus occurs!

WILLIAM C. McBRIDE, Corona del Mar