In this weekend’s Wall Street Journal, an editorial calls on the State of New York to lower property taxes to help stimulate the flagging upstate economy. Sound Familiar?

Higher property taxes will also ease the pressure on falling home prices and encourage the construction of new ones, because “Builders won’t build where property taxes drive homeowners away.”

That’s how you design a Mickey Mouse tax revenue system (Hat Tip: Brandon Sack) and promote a Florida-style economy that depends on new development rather than stimulating long-term economic activity. Every new home built is a one-shot deal; once the construction is done, the economic benefits of that construction subside unless the new home is built somewhere where there are lasting jobs.

Florida’s economy relies too heavily on new development, and the Crist-endorsed tax cuts didn’t change that. Like Florida, upstate New York, with it’s shrinking population, has a glut of homes without buyers. Stimulating new home construction will only make matters worse over time.

But the WSJ demonizes New York State United Teachers for opposing the plan. Based on the effects property tax cuts have had on Florida’s education system (schools are closing all over the state – Palm Beach, Orange and Pinellas are among the counties looking to close multiple k-12 schools) – the teacher’s union has reason to be worried. The current economic downturn is a product of the misguided belief that cutting government spending – which means reducing public services – is somehow good for the economy.

A stable infrastructure – which ought to include education, healthcare, and a social safety net – is the key to meaningful job creation and lasting economic growth.