The wealthy now have more disposable income than at any time in history. Proponents of raising taxes on affluent households to fund services suggest that these households should pay higher taxes now because they have benefitted so much from tax cuts in recent years. Saving jobs Taxing high incomes to pay for state services may also be one of the best approaches available to states to limit economic harm in a high unemployment, slow-growth environment. The primary fiscal actions taken by states in the last couple of years – cutting budgets and laying off workers – have been identified as among.
