Friday, Nov. 29, 2002 | 4:07 a.m.
There is good news and bad news for those who voted Republican thinking it would save them on taxes. The good news was that a huge federal income tax cut was passed (hundreds for average taxpayers, tens of thousands for the rich). The bad news, the very bad news, is that the cut has not helped the economy as promised. This has caused the flow of monies to Washington to be sharply reduced, just at a time when we must pay for the war on terrorism, as well as paying for domestic programs.
So we have already seen cuts in aid to states and localities for schools, highways, health care and other needed programs. And we will see more cuts. States that are already feeling the results of the stagnant economy -- Nevada Gov. Kenny Guinn, for example, says he now needs another $500 million to pay the bills -- have to decide whether to raise taxes sharply, or cut programs to the bone, or simply eliminate them.
You will not save on that tax cut, if you have to fork up more money to the state or local government.
RICHARD J. MUNDY
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