Posted on 04/28/2020 11:09:53 AM PDT by sickoflibs
The hottest thing on Capitol Hill right now, that is, before Adam Schiff kicks off his next impeachment inquiry over the Administration’s response to Wuhan virus, is a proposal for the federal government to bail out state governments for lost revenue. This revenue, mind you, was lost because most governors were stampeded into shutting down their state’s economy in the fanciful hope of preventing the spread of a virus that, outside of New York, looks neither spreadable nor dangerous.
The letter followed a similar plea a month earlier from 20 Republican governors — including many Trump allies such as Govs. Brian Kemp of Georgia, Kay Ivey of Alabama and Henry McMaster of South Carolina — who asked Congress to boost federal funding for states dealing with an unprecedented crisis that threatened to inflict long-term damage on their fiscal health.
While Congress included more than $150 billion for states and local governments last month in a bipartisan coronavirus relief bill, the increasingly vocal requests for more funding have been met with more resistance from Republicans calling for fiscal restraint.
Some, including Trump, have cast the request as a bailout for fiscally irresponsible states that have long-running budget challenges.
“It’s not fair to the taxpayers of Florida,” Florida Sen. Rick Scott (R) said Monday. “We sit here, we live within our means, and then New York, Illinois, California and other states don’t. And we’re supposed to go bail them out? That’s not right.”
Senate Majority Leader Mitch McConnell (R-Ky.) drew bipartisan backlash last week when he said that states going through financial difficulty should be allowed to declare bankruptcy.
Hogan, who has said that his state is among several that could face a revenue shortfall without federal aid, panned the idea as “the last thing we need in the middle of an economic crisis.”
What really has them in an uproar is that neither Trump nor McConnell seem inclined to support a bill that is supposed to provide money to state governments for TWO YEARS because of the actions of the past 60 days.
Donald J. Trump ✔ @realDonaldTrump Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? I am open to discussing anything, but just asking? 204K 10:41 AM - Apr 27, 2020
McConnell, for his part, is insisting that any state bailout give businesses safe harbor from liability over Wuhan infections incurred by workers after they re-open. (Looked for the video but couldn’t find it):
Democratic leaders are panning Mitch McConnell’s offer to marry new liability protections with aid to state and city governments, signaling a tough fight is ahead for Congress’s next round of coronavirus aid.
Senate Majority Leader Mitch McConnell (R-Ky.) said in an interview on Monday afternoon that he is “going to insist” that providing liability protections to businesses and employees be part of the next bill that will provide billions to local governments. But Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) may not go along.
I have to admit have next to zero sympathy for states who deliberately sabotaged their own economies and inflicted hardship and stupidity on their constituents (here I’m talking directly to my governor, Larry Hogan, who can stuff a case of facemasks up his fat butt, but there are many others in the same league). I fail to see the purpose of supporting state functionaries at the expense of the rest of the nation. I am at a loss to find a single state program that I’d contribute an extra dollar to support.
There are two immutable facts here. First, Trump is mostly right. The people who suffer from this will be state governors and legislatures and bureaucracies that are Democrat fiefdoms. Even before this crisis was generated, New York Governor Andrew Cuomo was trying to plug a $6+ billion hole in his state budget. Illinois, thanks to the fecklessness of its politicians and rapaciousness of its public employee unions was heading towards being sold for scrap and spare parts to pay its creditors. California is close behind. Using the self-inflicted wound of state mandated economic shutdowns to force these progressive sh**holes to dismantle their patronage systems and give citizens some breathing room from oppressive supervision has a certain irony to it that is difficult to resist. And McConnell is right, too. Any payments to the states must come with an immunity agreement to protect businesses from the Democrat ally, the trial lawyers associations.
The second fact is that if this bailout is scuttled, it will be demagogued in a way that will put Paul Ryan pushing Granny over the cliff to shame and that will cause some damage both to Trump and to the GOP Senate caucus. For Trump and McConnell to hold fast in face of this massive and unjustified bail out of states who were living way above their means long before the Wuhan virus arrived will require political will and courage. Can they make it stick?
Obviously the Federal government is losing revenue too but Hogan says that's OK because the Federal government has a 'printing press'.
Trump has no friends. Even his own family work against him.
No state bailouts. I’m fed up with nanny federal guidelines and dictates from DC to nowhere Wyoming, and in return, we pay them for irresponsibility.
He’s gutsy.
He hasn’t had the guts to do much else, but maybe he’ll discover them. One can only hope.
Trump has no friends. Even his own family work against him.
*********************************
Sadly, that’s kinda true for certain members of his family.
I am okay with State bailouts as long as it is related to the Covid-19 crisis to pay for things like health care workers, police, public health, fire etc. I believe this is typical say for a hurricane or other disaster. I would not be okay if the bailout took into account debts that occurred prior to the Covid-19 issue (e.g., funding a pension fund that was having problems etc.).
Not exactly, but close to that. Trump threatens to do something, but the DEMs just wait it out or push back, usually to their advantage. 86D chess!
The problem is that the only states that are asking for bailouts are the states that have functioned the worst, particularly NY. NY has a huge budget, huge income because they have among the highest taxes in the country...and they’ve squandered it on stupid programs and bureaucracy. Bailing them out means continuing this.
actually can afford to pay their medical employees, etc. although they may have to go into bankruptcy to get rid of their insane municipal pension liabilities. And then the people of the Great State of New York should go and lynch them.
But this isn’t going to happen as long as the US government (you and me, from our taxes) is picking up the pieces of their mismanagement.
So... if the wacko governors keep their states shut down through next year, you’re okay subsidizing their irresponsible behavior? Furthermore, why should taxpayers in Idaho and Wyoming pay for conditions in New York? I will never understand why people believe that the Federal government is an unlimited source of money that just appears from outer space from God.
It's already happening, I don't know how. My wife is a budget analyst for a local Gov't. They were planning furloughs but just received nearly $200 million in Federal money to avert the furloughs.
Cue the,”Trump wants people to DIE!!!!!!”
Oh, really? Give me pause to mop up the tears on my keyboard.
once i complained at a county council meeting that promising to pay for teachers’ full retirement was taking money from a lot of people’s retirement in higher taxes. Teachers told me i picked the wrong line of work.
no bailouts for mismanagement. let them eat cake.
I think you missed my point and it looks like you don’t understand how the federal government takes in taxes and distributes the revenue throughout the states. And no governor is going to be unreasonable about reopening. Like I said, it’s reasonable for the feds to kick in at times of disaster and solely for the purpose a disaster and nothing more.
There are many problems with bailing out states.
There are many advantages to letting states figure their own way out.
The question hanging is how much backbone Mitch has.
How much tax revenue is Florida going to lose this year because the vacation industry cratered? How will the Florida state government make up the difference?
Also factor in pension increases, pile-ons, giveaways and other election-time scams to “nail votes of the govt workers unions”.
Politicians alone are responsible for the pension debacle-—
True, the unions calculatedly increased their demands.....b/c the pols said “anything you want.”
Screwing over the taxpayers for the unions meant reelection.
If the states don't get some money there will be massive layoffs, the economy won't recover and Trump will likely lose.
It's great for everyone to talk tough but wait until we have 20% unemployment and the states start laying off first responders.
I'm pretty sure Trump, and hence the GOP, will ante up at least enough to get the states past the election.
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