Posted on 12/07/2010 6:52:37 PM PST by La Lydia
One of the best things to come out of the White House and Capitol Hill tax deal is that the liberals are apoplectic that there is no extension of the so called ”Build America Bonds.” These bonds are a rolling-state-government bailout mechanism that subsidizes the interest rate of state-issued bonds. Essentially, these bonds put off the day of reckoning for the blue states that are in a terminal budget flat-spin. This is a rolling bailout and you, the taxpayer, are on the hook and pay part of the interest to keep afloat states that have made terrible budgeting decisions. This decision by the federal government would force irresponsible states to resort to conventional bonding, without the federal government giving them preferential treatment. This only seems fair and conservatives need to make sure that Speaker of the House Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) don’t sneak a provision reinstatement these bonds when the House and Senate consider the White House-Capitol Hill tax compromise...
CNBC reports that these bonds have exploded since being included in the President’s Stimulus plan and account for over one quarter of the whole municipal bond market....
These states are facing a crisis, so why should taxpayers subsidize these bonds? Why should somebody in a fiscally responsible state be paying for the big government policies in Illinois and California? ...
Build America Bonds were not extended in the tax deal, despite pleas by the liberals to extend them. With the end of the Build America bond program, which the GOP has held firm to date, means that blue states that are spending beyond their means must face the music that much sooner.
The unions really want this and are expected to come to Capitol Hill begging to get this put back into the deal. They want to make sure that irresponsible states with huge liabilities to public union members, including over funded pension programs and higher than average salaries, don’t get renegotiated by financially distressed states.
Conservatives need to make sure that this bailout program is not extended. Red state taxpayers are paying the tab for irresponsible blue states. The Build Bailout America Bonds experiement was a failure and it is time to end this fiscally irresponsible program.
It’s a good deal for Mexico.
I’ll dance a jig in the middle of Main St if this makes it past Reid.
Win!
Big win.
You mean the ‘Bilk America Bonds’?
Definitely these are the bilk America bonds. Your state does its best to live within its budget, but you end up paying for places like California and Illinois, anyway. You can’t win.
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