Furloughs begin July 12 for FRC-East employees. FRC-East will be closed Friday, Saturday and Sunday beginning July 12. I have been thinking a lot about the furloughs and how it is going to affect local businesses. However, the furloughs effects is bigger than local businesses. Has anyone done the calculations for the loss in tax collection revenue? The furloughed employees are going to be paying less in payroll taxes - federal and state, less in sales tax because they are going to have less money to spend, less in gas tax - because they are going to be driving less. How does this trickle down? If they are spending less, the local businesses might have to cut employees. Those employees are paying less payroll taxes, less sales tax, less gas tax. If the tax collection is down, how are governments (local, county, state, federal) going to make up the difference? Are taxes going to be raised? Are services going to be decreased? Um...
