Posted on 01/07/2018 11:14:55 PM PST by Oshkalaboomboom
Tremendous range of funding for state employee pensions from IL and CA (and KY) among the worst with perhaps 45% of the correct funding actually set aside to states like WI where the funding level is over 100%. Critical point - we cannot let the irresponsible states benefit from their neglect of funding by an explicit or implicit federal bailout.
With a booming economy states need to means test welfare. They can start with drug testing welfare recipients.
Sanctuary states will be forced to adopt a state income tax to collect from those who do not file tax returns.
And finally, interest rates, while still near historic lows, are gradually and necessarily going back up. This will raise the cost of borrowing for states, so they will be forced to cut spending somewhere.
Oh, gee. Guess the states will have to cut back on spending. Breaks my heart.
They’ll expect the Feds to bail them out, which means us!
Let’s just prepare ourselves.
I think later this month, the US government Census Bureau, will announce that last year, the US ran an all-time high trade deficit with China.
An all time record. Trump and all.
See for yourselves. Extrapolate the numbers, to include one more month.
https://www.census.gov/foreign-trade/balance/c5700.html
A new record terrible trade deficit.
Just saying.
Problem is that entitlements will be the last to go.
Let the state and local governments starve, they do nothing of value that compensates for their costs. We should start over by firing the lot and starting fresh.
But when are the govt. sponsors every going bust?
Instead, "funded" plans have had the opposite effect: they let local and national pols push off hard choices to the following generations. In some cases they also let crooks skim from the pot.
Here's my proposal: each budget year the taxing authority (council, school board etc.) gets told "Here's your total payroll for next year. Figure out how you want to split in between current staff and retirees". The results may be surprising.
Government obligations are backed by the full faith and credit of the printing press.
The “bomb cyclone” consequence is never mentioned.
Like California. Spewing out giveaway programs with the expectation that Uncle Sam would bail them out.
Time to have your hummingbird asses cash the checks your alligator mouths have been writing.
We elected a fiscal conservative, Matt Bevin, governor here in Kentucky. Bevin’s number one job is addressing this problem. I have confidence that we can work out of this mess since we finally have a Republican legislature as well.
The Republican Kentucky Legislature wants to slap a $1/pack tax on cigarettes. That’s not very encouraging.
Prosperity and inflation will provide a remedy for most states.
Time to enact a 1% national sales tax coupled with a 1% reduction in federal spending. All funds collected or savings resulting from a reduction in spending are, by law, to be used for federal debt reduction. This “penny solution” has been proposed before and ignored by Congress but now would be a good time to implement it.
Folks,
Nothing changes until the money runs out..............
Now what will that look like?
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